International trade Exercices

G12 DP Economics HL
Agenda
• Calculation of tariff and quotas effect on price, quantity and surplus
(book p 447 tariffs and p452 quotas)
• Exam-like questions
Quotas loss of welfare
• Show consumer and producer surplus with free international trade
• Show the consumer and producer surplus after the restriction
• Show the transfer of surplus from producer to consumer
Exams like question
• To decrease domestic monopoly power a government could embrace
free trade (no more than 3 phrases)
• Social surplus increases with free trade but not all parties are better
off. Discuss with diagrams