If Bangladesh is open to international trade of maize without any restrictions, it will importfull value for your answer, accounting for the horizontal axis units.)Suppose the Bangladeshi government wants to reduce imports to exactly 60,000 tons of maize to help domestic producers. A tariff of $ton will achieve this.A tariff set at this level would raise $tons of maize. (Note: Be sure to enter thein revenue for the Bangladeshi government.per 5. Effects of a tariff on international tradeThe following graph shows the domestic supply of and demand for maize in Bangladesh. Bangladesh is open to international trade of maize withoutany restrictions. The world price (Pw) of maize is $260 per ton and is represented by the horizontal black line. Throughout this problem, assume thatthe amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associatedwith international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting orimporting 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)5004704404103803503202902602302000+SupplyDemandPW30 60 90 120 150 180 210 240 270 300QUANTITY (Thousands of tons of maize)Graph Input ToolMarket for Maize in BangladeshPrice(Dollars per ton)Domestic Demand(Thousands of tonsof maize)44060Domestic Supply(Thousands of tonsof maize)?240

A tariff refers to a tax imposed on an imported product or service to generate revenue.

If Bangladesh is open to international trade of maize without any restrictions, it will import full value for your answer, accounting for the horizontal axis units.) Suppose the Bangladeshi government wants to reduce imports to exactly 60,000 tons of maize to help domestic producers. A tariff of $ ton will achieve this. A tariff set at this level would raise $ tons of maize. (Note: Be sure to enter the in revenue for the Bangladeshi government. per

If Bangladesh is open to international trade of maize without any restrictions, it will import full value for your answer, accounting for the horizontal axis units.) Suppose the Bangladeshi government wants to reduce imports to exactly 60,000 tons of maize to help domestic producers. A tariff of $ ton will achieve this. A tariff set at this level would raise $ tons of maize. (Note: Be sure to enter the in revenue for the Bangladeshi government. per

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Protective Tariffs

A tariff is a kind of tax that is charged on exported and imported items. It means tariff is charged on both kinds of goods i.e., exported and imported. However, some goods may be exempted from this kind of tariff. Protective Tariffs refer to the charges which a country charged on imported goods to protect its domestic market. It also protects countries Industrialists in their Production. So, that their markets remain intact and do not get dumped by outside supply.

Question

If Bangladesh is open to international trade of maize without any restrictions, it will import
full value for your answer, accounting for the horizontal axis units.)
Suppose the Bangladeshi government wants to reduce imports to exactly 60,000 tons of maize to help domestic producers. A tariff of $
ton will achieve this.
A tariff set at this level would raise $
tons of maize. (Note: Be sure to enter the
in revenue for the Bangladeshi government.
per

5. Effects of a tariff on international trade
The following graph shows the domestic supply of and demand for maize in Bangladesh. Bangladesh is open to international trade of maize without
any restrictions. The world price (Pw) of maize is $260 per ton and is represented by the horizontal black line. Throughout this problem, 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)
500
470
440
410
380
350
320
290
260
230
200
0
+
Supply
Demand
PW
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)
440
60
Domestic Supply
(Thousands of tons
of maize)
?
240

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