Economics (AS & A Level) · May / June 2024 · Paper 13 · Question 27

A country imports natural gas for which it has price-inelastic demand. What is the effect if that country imposes an import duty on the gas?

1. AConsumers in the importing country will suffer a loss of consumer surplus.
2. BThe exporting country will gain export revenue.
3. CThe importing country's primary income will increase.
4. DThe price of natural gas will rise in other importing countries.

As printed in the paper