← A Level Economics Revision · All Tariff questions · Home

A-Level Economics · Tariff diagram question

Which distance shows imports AFTER the tariff?

▶ Try it in the game first

The diagram

The answer

The distance B C. At PW+T domestic supply extends to Q₃ and domestic demand contracts to Q₄ — imports squeezed to B–C. The tariff lifts the price to PW+T, and both blades of the scissors close on imports: domestic supply extends from Q₁ to Q₃ (A up to B) and domestic demand contracts from Q₂ to Q₄ (E back to C). Imports fall from A–E down to B–C. Because domestic output has risen and labour is a derived demand, domestic employment rises — that's the chain the examiner wants.

Test yourself properly

This is one of 6 questions on the tariff diagram — every corner lettered, every wrong answer diagnosed.

▶ Play the tariff game All questions & answers