Note AcademyNote Academy
Start

Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 23

9708Globalisation

Country X joins a customs union with country Y and will remove the tariff on its imports of good M from country Y. Under which conditions will trade creation in country X be the largest?

  1. Alarge tariff; price elasticity of demand –0.8
  2. Blarge tariff; price elasticity of demand –1.4
  3. Csmall tariff; price elasticity of demand –0.8
  4. Dsmall tariff; price elasticity of demand –1.4

As printed in the paper

Show the answer

Correct answer: B. large tariff; price elasticity of demand –1.4

Sit this whole paper →More on Globalisation

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.