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4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.

4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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00 80 40 PRICE (Dollars per ton) 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 1080 Domestic Demand Domestic Supply 1040 000 096 920 880 840 008 720 680 007 240 QUANTITY (Tons of oranges) 120 280 320 MacBook Pro G Search or type URL -> %23 2. 6 R. H. C.
Transcribed Image Text:00 80 40 PRICE (Dollars per ton) 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 1080 Domestic Demand Domestic Supply 1040 000 096 920 880 840 008 720 680 007 240 QUANTITY (Tons of oranges) 120 280 320 MacBook Pro G Search or type URL -> %23 2. 6 R. H. C.
00 B. PRICE (Dollars per ton) 1080 Domestic Demand Domestic Supply 1040 00 0n 096 920 880 840 09 720 680 + 280 240 0 40 120 320 000 QUANTITY (Tons of oranges) If Guatemala is open to international trade in oranges without any restrictions, it will import tons of oranges. Suppose the Guatemalan government wants to reduce imports to exactly 160 tons of oranges to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Guatemalan government. Grade It Now Save & Continue Continue without saving MacBook Pro G Search or type URL -> 3. H. MI
Transcribed Image Text:00 B. PRICE (Dollars per ton) 1080 Domestic Demand Domestic Supply 1040 00 0n 096 920 880 840 09 720 680 + 280 240 0 40 120 320 000 QUANTITY (Tons of oranges) If Guatemala is open to international trade in oranges without any restrictions, it will import tons of oranges. Suppose the Guatemalan government wants to reduce imports to exactly 160 tons of oranges to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Guatemalan government. Grade It Now Save & Continue Continue without saving MacBook Pro G Search or type URL -> 3. H. MI
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