The graph illustrates the domestic supply and demand for maize in Bangladesh. The world price ($ P_W $) of maize is $270 per ton, shown by a horizontal black line. Assume any single country's demand doesn't affect this world price, and no transport or transaction costs exist for international trade. Domestic suppliers aim to satisfy local demand prior to trade activities.**Graph Breakdown:**- **Axes:** - The vertical axis represents the price in dollars per ton, ranging from $270 to $540. - The horizontal axis shows the quantity in thousands of tons of maize, ranging from 0 to 300.- **Demand Curve:** - Illustrated in orange, it slopes downward from left to right, indicating an inverse relationship between price and quantity demanded.- **Supply Curve:** - Represented in blue, it slopes upward from left to right, showing a direct relationship between price and quantity supplied.- **World Price (P$_W$):** - A horizontal black line at $270, indicating the global price level of maize.**Graph Input Tool:**- **Price:** Set at $480 per ton.- **Domestic Demand:** 60 thousand tons.- **Domestic Supply:** 240 thousand tons.**Note:** Adjusting values in white fields will dynamically change the graph and corresponding amounts in the grey fields. **International Trade and Tariff Implementation in Bangladesh's Maize Market***Open Market Scenario:*If Bangladesh engages in international trade for maize without any restrictions, it is projected to import a significant quantity, as illustrated by an unspecified amount in the placeholder [____] tons of maize.*Government Intervention for Domestic Support:*To safeguard domestic producers, the Bangladeshi government aims to limit imports to precisely 120,000 tons of maize.*Implementation of Tariffs:*To achieve this reduction in imports, a tariff of $[_____] per ton needs to be enforced.*Projected Revenue from Tariffs:*By instituting a tariff at this specified rate, the government anticipates generating $[_____] in revenue.*Conclusion:*This approach reflects a strategic balance between supporting local agricultural interests and engaging in global trade, highlighting the role of tariffs as an economic tool for managing international commerce.

Tariff is a term used in international economics.. Tariff means the tax imposed on the trade that…

If Bangladesh is open to international trade in maize without any restrictions, it will import Suppose the Bangladeshi government wants to reduce imports to exactly 120,000 tons of maize to help domestic producers. A tariff of per ton will achieve this. A tariff set at this level would raise $ tons of maize. in revenue for the Bangladeshi government.

If Bangladesh is open to international trade in maize without any restrictions, it will import Suppose the Bangladeshi government wants to reduce imports to exactly 120,000 tons of maize to help domestic producers. A tariff of per ton will achieve this. A tariff set at this level would raise $ tons of maize. in revenue for the Bangladeshi government.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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