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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.

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter18: Gaining From International Trade
Section: Chapter Questions
Problem 4CQ
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The following graph shows the domestic supply of and demand for maize in Bangladesh. The world price (Pw) of maize is $270 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 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. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per ton) 540 Supply + + I 450 420 390 X 360 330 Demand 510 480 300 270 240 0 P W 30 60 90 120 150 180 210 240 270 300 QUANTITY (Thousands of tons of maize) Graph Input Tool Market for Maize in Bangladesh Price (Dollars per ton) Domestic Demand (Thousands of tons of maize) 480 60 Domestic Supply (Thousands of tons of maize) (?) 240
Transcribed Image Text:The following graph shows the domestic supply of and demand for maize in Bangladesh. The world price (Pw) of maize is $270 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 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. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per ton) 540 Supply + + I 450 420 390 X 360 330 Demand 510 480 300 270 240 0 P W 30 60 90 120 150 180 210 240 270 300 QUANTITY (Thousands of tons of maize) Graph Input Tool Market for Maize in Bangladesh Price (Dollars per ton) Domestic Demand (Thousands of tons of maize) 480 60 Domestic Supply (Thousands of tons of maize) (?) 240
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.
Transcribed Image Text: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.
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