Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 25

A small country imposes no tariffs and has a perfectly elastic supply of smartphones from the rest of the world. Which statement is correct after the imposition of a tariff?

1. AThe domestic demand for smartphones will rise.
2. BThe domestic price of smartphones will rise.
3. CThe government will lose tax revenue.
4. DThe supply of imports will increase.

As printed in the paper