IB Economics HL 2.7.5 Hl Intervention Calculations Questions

Practise 2.7.5 (HL) Intervention calculations in IB Economics HL by reviewing the concepts and applying them to marked questions.

Exam points

Calculate effects of price ceilings and price floors on markets and stakeholders
Calculate effects of indirect taxes and subsidies on markets and stakeholders

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Study 2.7.5 (HL)—Intervention calculations conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

[Maximum number: 3]

(a)

Using Figure 1, determine the size of the decrease in monthly corn consumption following the imposition of the price floor.

[ 1 ]

(b)

Using Figure 1, calculate the change in consumer expenditure on corn in Nissos.

[ 2 ]

$8 \times 6=\$ 48$ million
$10 \times 5=\$ 50$ million
Any valid working is sufficient for [1].

Change $=\$ 2$ million OR an increase of $\$ 2$ million.
An answer of 2 or 2 million or $\$ 2$ million without working is sufficient for [1].

Marking guidance:

OFR applies.
For full marks to be awarded the response must provide valid working and include correct units.

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IB Economics HL 2.7.5 Hl Intervention Calculations Questions question 1

Question (a)

Question (b)