Economics Multiple Choice Question – 10 April 2022

Country M imposes a tariff on imports of steel.

Which price elasticity values will result in the smallest reduction in steel imports into M?

Select ONE answer:

1. price elasticity of supply of domestic steel producers in country M – 0.2 & price elasticity of demand for steel in country M – 0.4
2. price elasticity of supply of domestic steel producers in country M – 1.0 & price elasticity of demand for steel in country M – 0.8
3. price elasticity of supply of domestic steel producers in country M – 1.5 & price elasticity of demand for steel in country M – 1.0
4. price elasticity of supply of domestic steel producers in country M – 2.0 & price elasticity of demand for steel in country M – 1.2

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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