400 Domestic Demand Domestic Supply 460 430 400 370 PS 340 310 280 250 220 180 20 60 QUANTITY (Tons of wheat) 40 80 100 120 140 180 180 200 If New Zealand allows international trade in the market for wheat, it will import tons of wheat. Now suppose the New Zealand government decides to impose a tariff of $60 on each imported ton of wheat. After the tariff, the pr consumers pay for a ton of wheat is and New Zealand will import tons of wheat. PRICE (Dollars perton)
400 Domestic Demand Domestic Supply 460 430 400 370 PS 340 310 280 250 220 180 20 60 QUANTITY (Tons of wheat) 40 80 100 120 140 180 180 200 If New Zealand allows international trade in the market for wheat, it will import tons of wheat. Now suppose the New Zealand government decides to impose a tariff of $60 on each imported ton of wheat. After the tariff, the pr consumers pay for a ton of wheat is and New Zealand will import tons of wheat. PRICE (Dollars perton)
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Homework (Ch 09)
Coes
Show the effects of the $00 tariff on the following graph.
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Ue the black line (plus symbel) to indicate the world price pls the tariff. Then, une the greon points (triangle symbob) to show the consumer surplus
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with the tarf and the purple triangle (diamond symboh) to show the producY surplus with the tariff. Lastly, use the orange quadrilateral (square
symbol) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shaide the areas
representing deaadwopht los (DWwI) caused by the tariff.
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Transcribed Image Text:Homework (Ch 09)
Domestic Demand
Domestic Supply
490
Tools
480
430
CS
400
370
PS
340
310
E 7-
ited
280
250
220
190
20
40
60
80
100
120
140
180
180
200
QUANTITY (Tons of wheat)
If New Zealand allows international trade in the market for wheat, it will import
tons of wheat.
Now suppose the New Zealand government decides to impose a tariff of $60 on each imported ton of wheat. After the tarif, the pr
consumers pay for a ton of wheat is
and New Zealand will import
tons of wheat.
PRICE (Dollars perton)
Expert Solution
Step 1
In closed economy, the equilibrium price of wheat is $340 and quantity is 100 tons of wheat but in open trade, world price of wheat is $250 which is less than equilibrium price of wheat in New Zealand, so New Zealand import wheat from foreign countries.
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