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If Panama is open to international trade of maize without any restrictions, it will import tons of maize. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Panamanian government wants to reduce imports to exactly 20,000 tons of maize to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Panamanian government.

If Panama is open to international trade of maize without any restrictions, it will import tons of maize. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Panamanian government wants to reduce imports to exactly 20,000 tons of maize to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Panamanian government.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If Panama is open to international trade of maize without any restrictions, it will import tons of maize. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Panamanian government wants to reduce imports to exactly 20,000 tons of maize to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Panamanian government.
Transcribed Image Text:If Panama is open to international trade of maize without any restrictions, it will import tons of maize. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Panamanian government wants to reduce imports to exactly 20,000 tons of maize to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Panamanian government.
The following graph shows the domestic supply of and demand for maize in Panama. Panama is open to international trade of maize without any restrictions. The world price (Pw) of maize is $270 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. Graph Input Tool Market for Maize in Panama 450 430 I Price (Dollars per ton) Supply 410 410 Domestic Demand (Thousands of tons of maize) Domestic Supply (Thousands of tons of maize) 20 80 390 370 350 330 310 Demand 290 P. 270 250 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of tons of maize) PRICE (Dollars per ton)
Transcribed Image Text:The following graph shows the domestic supply of and demand for maize in Panama. Panama is open to international trade of maize without any restrictions. The world price (Pw) of maize is $270 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. Graph Input Tool Market for Maize in Panama 450 430 I Price (Dollars per ton) Supply 410 410 Domestic Demand (Thousands of tons of maize) Domestic Supply (Thousands of tons of maize) 20 80 390 370 350 330 310 Demand 290 P. 270 250 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of tons of maize) PRICE (Dollars per ton)
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