Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

The diagram illustrates the introduction of an import tariff. SW represents world supply. SW + tax shows world supply after the tariff has been introduced. Which statement is incorrect?

  • ADomestic demand will fall from q4 to q3.
  • BImports will change from q1q4 to q2q3.
  • CImports will fall from q4 to q3.
  • DSupply of domestic goods will increase from q1 to q2.

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