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If Zambia is open to international trade in limes without any restrictions, it will import Suppose the Zambian government wants to reduce imports to exactly 160 tons of limes to help domestic producers. A tariff of achieve this. A tariff set at this level would raise tons of limes in revenue for the Zambian government. per ton will

If Zambia is open to international trade in limes without any restrictions, it will import Suppose the Zambian government wants to reduce imports to exactly 160 tons of limes to help domestic producers. A tariff of achieve this. A tariff set at this level would raise tons of limes in revenue for the Zambian government. per ton will

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter34: Globalization And Protectionism
Section: Chapter Questions
Problem 55P: Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply...
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4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of limes in Zambia. The world price (Pw) of limes is $780 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of limes and that there are no transportation or transaction costs associated with international trade in limes. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dolars per ton) 1185 1140 1095 1050 1005 000 915 870 825 700 735 0 Domestic Demand 4 00 Domestic Supply 120 180 200 240 280 320 300 400 QUANTITY (Tons of limes)
Transcribed Image Text:4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of limes in Zambia. The world price (Pw) of limes is $780 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of limes and that there are no transportation or transaction costs associated with international trade in limes. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dolars per ton) 1185 1140 1095 1050 1005 000 915 870 825 700 735 0 Domestic Demand 4 00 Domestic Supply 120 180 200 240 280 320 300 400 QUANTITY (Tons of limes)
If Zambia is open to international trade in limes without any restrictions, it will import Suppose the Zambian government wants to reduce imports to exactly 160 tons of limes to help domestic producers. A tariff of achieve this. A tariff set at this level would raise tons of limes in revenue for the Zambian government. per ton will
Transcribed Image Text:If Zambia is open to international trade in limes without any restrictions, it will import Suppose the Zambian government wants to reduce imports to exactly 160 tons of limes to help domestic producers. A tariff of achieve this. A tariff set at this level would raise tons of limes in revenue for the Zambian government. per ton will
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