4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of maize in Kenya. The world price (Pw) of maize is $265 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 505 475 445 PRICE (Delare per to 415 366 355 295 255 Domestic Demand 235 209 1. 50 I 1 Y-Intercept: 265 Domestic Supply 100 150 200 250 30 YA 400 QUANTITY (Toms of mace) 450 500 ?

4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of maize in Kenya. The world price (Pw) of maize is $265 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 505 475 445 PRICE (Delare per to 415 366 355 295 255 Domestic Demand 235 209 1. 50 I 1 Y-Intercept: 265 Domestic Supply 100 150 200 250 30 YA 400 QUANTITY (Toms of mace) 450 500 ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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