Economics (AS & A Level) · Oct / Nov 2022 · Paper 12 · Question 27
9708Protectionism
The diagram shows the effect of introducing a tariff on a product. What determines the producer surplus that the tariff generates for domestic producers?
- Athe price elasticities of domestic supply and demand
- Bthe tariff rate and the price elasticities of both domestic demand and supply
- Cthe tariff rate and the price elasticity of domestic demand
- Dthe tariff rate and the price elasticity of domestic supply
As printed in the paper
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Correct answer: D. the tariff rate and the price elasticity of domestic supply
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