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

See similar textbooks

Similar questions

Please help me solve this problem. Thanks!
For a large country import tariffs will yield a price increase for domestic consumer that is A higher than the tariff itself B equal to the tariff itself C smaller than the tariff itself
The demand for cars in a certain country is given by: ? = 15,000 − 0.3?, where P is the price of a car. Supply by domestic car producers is: ? = 5,000 + 0.2?. Suppose this economy opens to trade, and the world price of a car is $13,000. If the government imposes a quota allowing 3,000 cars to be imported, then the domestic price of cars will be
The demand for cameras in a certain country is given by D = 8000 - 30P, where P is the price of a camera. Supply by domestic camera producers is S 4000 + 10P. Suppose that world price of a camera is $150. If this country decides to trade, which of the following is true? 3000 cameras will be exported Domestic production of cameras will decrease by 500 Domestic production of cameras will increase by 500 2000 cameras will be imported
The figure below shows the domestic demand (Dd) and domestic supply (Sa) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of the quota, the maximum import quantity is QQ: Sa Sa+ Q. $800 $750 $715 World price New export price with quota Da 0.4 0.5 0.6 1.5 1.8 2.0 Quantity (Millions of Mopeds per year) If the government auctions the quota licenses, the importing nation will lose $29.75 million. O gain $21.5 million. O gain $31.5 million. lose $10 million.
Why does the efficiency of an import tariff depend on the price elasticity of demand?
Recently the U.S. government filed a complaint with the World Trade Organization (WTO) that the Spanish government was subsidizing exports of ripe olives, which are used as an ingredient in other products, such as olive oil. In the U.S., who benefits from the Spanish subsidy of ripe olives to the U.S.? U.S. government imposes a countervaliling duty (tariff) on imports of ripe olives, who benefits? O producrersof ripe olives; producers of olive oil O producers of olive oil; producers of ripe olives O producers of olive oil; producers of olive oil O producers of ripe olives; producers of ripe olives If the
Solve it correctly and explains
There is a country which produces cars. It costs $11,000 for the domestic producers to produce one car, but they are not competitive on the world market where these cars are sold at $10,000. There is free trade between this country and the rest of the world right now. The government is thinking about applying export subsidies to promote car export. As a government advisor, try to give a hint whether it is good idea or not? Who wins and who loses by applying the subsidies? How much subsidy would allow domestic producers to sell on the world market? Provide the arguments on which your advice is based!
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw) of soybeans is $550 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 830 Domestic Demand Domestic Supply 795 760 725 O 690 655 620 585 Pw 550 515 480 30 60 06 120 150 180 210 240 270 300 QUANTITY (Tons of soybeans) PRICE (Dollars per ton)
Foreign's demand curve for wheat is p*=8-1/20q*d. Its supply curve is p*=2+1/20q*s Determine the effect of the tariff on
4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of times in Jordan. The world price (Pw) of limes is $790 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 limes and that there are no transportation or transaction costs associated with international trade in limes. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars perton) 1110 1070 1030 9:00 950 910 BTO 830 790 750 710 Domestic Demand 0 10 1 100 Domestic Supply 150 200 250 300 350 400 450 500 QUANTITY (Tons of times)