If Guatemala is open to international trade in oranges without any restrictions, it will importSuppose the Guatemalan government wants to reduce imports to exactly 120 tons of oranges to help domestic producers. A tariff of Swill achieve this.A tariff set at this level would raise Stons of oranges.in revenue for the Guatemalan government.per ton The following graph shows the domestic demand for and supply of oranges in Guatemala. The world price (Pw) of oranges is $545 per ton and isdisplayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demandedby any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with internationaltrade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takesplace.PRICE (Dollars perton)705 Domestic Demand755195835605545465030140Domestic SupplyP120 150 180 210 240 270 300QUANTITY (Tons of oranges)

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

If Guatemala is open to international trade in oranges without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 120 tons of oranges to help domestic producers. A tariff of S will achieve this. A tariff set at this level would raise S tons of oranges. in revenue for the Guatemalan 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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