Part of the syllabus: International Economics
Source: The Economic Times
Date of the article: 2015-07-29
Link to article: Traders Jittery as govt plans to hike wheat import duty by 10 per cent
This IB Economics Internal Assessment article sets you up for full marks right away!
Possible talking points:
- Tariff diagram explaining of what will take place once the tariff is introduced (or raised) – change in price, changes in quantities of imports and domestically produced wheat, tariff revenue, deadweight welfare losses.
- Diagram of mentioned small bakers – what will happen to their production costs and how will this affect them in general. Also, the DWL which will be passed on to them from the previous diagram.
Discussion and evaluation points:
- Price elasticity of wheat and of those bakeries’ products such as noodles and bread – how that changes the import duty’s effect.
- Evaluation of whether this will help domestic produces (Price elasticity of supply could be mentioned), the gain in government revenue and possible changes in living standards because of a change in the price of a necessity.