Gce Model Questions Vol1 2020 Government Question 45
Practice objective / multiple choice question 45 from the 2020 Gce Model Questions Vol1 Government examination.
Country X imports good G at a world price of \(\$10\) per unit. The government imposes a 20 % ad valorem tariff on imports of G. Domestic producers can supply G at \(\$13\) per unit. Consumer demand for G is given by \(Q = 5000 - 200P\), where \(P\) is the price inclusive of the tariff. Determine the equilibrium quantity demanded after the tariff and calculate the change in consumer surplus relative to free‑trade conditions. Give the change in consumer surplus (in dollars) rounded to the nearest whole number (a negative value indicates a loss).
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About This Question
This is Gce Model Questions Vol1 2020 Government Question 45. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Government examination.
Difficulty level: Hard .
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