**Title: Understanding Tariff Impact on Maize Imports in Bangladesh****Description:**If Bangladesh is open to international trade in maize without any restrictions, it will import [_____blank_____]. tons of maize.Suppose the Bangladeshi government wants to reduce imports to exactly 100 tons of maize to help domestic producers. A tariff of $[_____blank_____]. per ton will achieve this.A tariff set at this level would raise $[_____blank_____]. in revenue for the Bangladeshi government.**Note:** In this example, blanks indicate where specific values or amounts are to be determined, highlighting the impact of trade policy decisions on import levels and government revenue. ### Effects of a Tariff on International Trade#### OverviewThis section explores the impact of tariffs on the international trade of maize in Bangladesh. The graph below illustrates both the domestic demand and supply for maize. The world price ($P_w$) is set at $240 per ton and shown as a horizontal black line. This analysis assumes that no single country's demand can influence the global price of maize. Additionally, it presumes that there are no transportation or transaction costs associated with international trade. Within the domestic market, local suppliers aim to meet domestic demand as much as possible before engaging in exports or imports.#### Graph Explanation- **Axes**: - **Y-axis (Price in dollars per ton)**: Ranges from $190 to $440, marking the price points for maize. - **X-axis (Quantity in tons of maize)**: Ranges from 0 to 500, indicating the quantity of maize demanded and supplied.- **Curves**: - **Domestic Demand (Blue Curve)**: Slopes downward from left to right, showing that as the price decreases, the quantity demanded increases. - **Domestic Supply (Orange Curve)**: Slopes upward, indicating that as the price increases, the quantity supplied rises.- **World Price Line ($P_w$)**: - Shown as a horizontal black line at $240 per ton. - Intersects both the domestic demand and domestic supply curves.- **Equilibrium Points**: - Where the world price line intersects the domestic supply curve represents the domestic supply quantity at the world price. - Intersection with the domestic demand curve shows the domestic demand quantity at the same price.This setup provides a visual representation of the balance between domestic production and consumption under international trade conditions, with a focus on the effects of a world price without tariffs.

This can be defined as terminology that shows the total amount of demand for the commodities and services in a nation of a particular commodity in a particular period of time with the given prices in the market. It also works as an indicator of the international market which shows the standard of living of the people in that particular economyIf the is $240 So country B will import 300 tons of maizeTo reduce the import to the 100 tons.The country Country B has to impose a tariff of $50 per ton because after this level of tariff the will be 300 and will 200 and the will be $250.So The tariff would raise $5000 in revenue for the government of Country B So country B will import 300 tons of maizeThe country B has to impose a tariff of $50 perThe country B revenue will be $5000.

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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 100 tons of maize to help domestic producers. A tariff of S will achieve this. A tariff set at this level would raise $ tons of maize. in revenue for the Bangladeshi government. per ton

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 100 tons of maize to help domestic producers. A tariff of S will achieve this. A tariff set at this level would raise $ tons of maize. in revenue for the Bangladeshi government. per ton

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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