Economics (AS & A Level) · May / June 2021 · Paper 13 · Question 24

The world trade price of cars in country Y is US$10 000. At this price domestic car producers supply 100 000 cars to the market and domestic consumers purchase 200 000 cars. The government of country Y imposes a 10% tariff on imported cars. Under which conditions will this tariff raise the most revenue for the government?

1. A+0.5 / –0.5
2. B+0.5 / –1.5
3. C+1.5 / –0.5
4. D+1.5 / –1.5

As printed in the paper