Tariff Diagram Maker
The tariff diagram is the most detail-dense diagram in the IB course: domestic supply and demand, a horizontal world supply line, a raised world-supply-plus-tariff line, and up to six labelled quantities with revenue rectangles and two welfare-loss triangles. Drawing it by hand under time pressure is brutal.
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IB EconGraph AI generates the full structure with consistent geometry, and the shading tools make the revenue rectangle and DWL triangles quick to add and easy to distinguish.
What the tariff diagram shows
The small-country tariff diagram shows:
- Domestic S and D: the home market curves determining the autarky equilibrium.
- World supply (Sw): a horizontal line at the world price Pw, the country imports the gap between Qd and Qs at that price.
- Sw + tariff: a parallel horizontal line at Pw + t; imports shrink as domestic output expands and consumption contracts.
- Government revenue: the rectangle: tariff × post-tariff import quantity.
- Welfare losses: two triangles, the production inefficiency (higher-cost domestic output) and the consumption loss (forgone consumer surplus).
How to draw it in IB EconGraph AI
- Prompt: "tariff diagram for a small country importing steel, show government revenue and both deadweight loss triangles".
- Check the four quantities on the x-axis (Qs, Qs', Qd', Qd) are in the right order and labelled.
- Shade the revenue rectangle between the two horizontal lines and the post-tariff import quantities.
- Shade the two DWL triangles either side of the revenue rectangle in a different colour.
- Add a caption naming the good and the tariff, and export as SVG for your document.
IA & exam tips
- Trade-war and protectionism articles are IA staples, this diagram plus a stakeholder analysis (consumers, producers, government, foreign exporters) is a complete commentary skeleton.
- A quota uses the same structure but with no revenue rectangle for the government (the quota rent may go to foreign producers), a strong evaluation contrast.
- Keep colours consistent: one colour for welfare losses, another for revenue, so the examiner can read it at a glance.
Frequently asked questions
Does it handle quota diagrams too?
Yes, describe a quota and the AI draws the restricted-imports structure; or adapt the tariff diagram manually by replacing the tariff line.
Can I label all six quantities?
Yes, annotated points project dotted lines onto the axes, and every label supports subscripts (Q_1, Q_2 …).
Why are there two deadweight loss triangles?
One is the production inefficiency (domestic firms produce units that the world could supply more cheaply); the other is lost consumer surplus from reduced consumption. The page diagram shows both positions.
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