IB Economics HL 4.2.2 Quotas
IB Economics HL 4.2.2 Quotas
Students practise applying international trade diagrams to quotas, calculating welfare effects, and evaluating real-world impacts like price changes and producer surplus shifts…
How this is tested
- draw a trade diagram showing quota imposition or removal and the effect on imports
- explain how quota removal lowers domestic price, increases import volume, and reduces domestic production
- evaluate equity and efficiency trade-offs: e.g., higher consumer surplus versus lost producer surplus