AI-generated, not reviewedHL only8 marks, command term Calculate
The figures are invented. A diagram shows a country's market for an imported good. The world price is $20. With free trade domestic producers supply 40 units and consumers demand 160 units. The government sets a tariff of $5 per unit. Domestic supply rises to 60 units and demand falls to 130 units. (i) Calculate the quantity of imports before and after the tariff. [2] (ii) Calculate the government's tariff revenue. [1] (iii) Calculate the change in domestic producers' revenue. [2] (iv) Calculate the change in foreign producers' revenue. [1] (v) Calculate the welfare loss caused by the tariff. [2]
HL Paper 3-style calculation (standalone practice; not an IB question).