Now suppose the Jordanian government decides to impose a tariff of $120 on each imported ton of maize. Under the tariff, the price Jordanian consumers pay for a ton of maize becomes $ and Jordan will import tons of maize. Use the following graph to show the effects of the $120 tariff. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 1280 1220 1160 1100 1040 980 920 860 800 740 680 0 Domestic Demand 25 50 Domestic Supply 75 100 125 150 175 QUANTITY (Tons of maize) 200 PW 225 250 World Price Plus Tariff CS 842 PS **/** Government Revenue. DWL ?

Now suppose the Jordanian government decides to impose a tariff of $120 on each imported ton of maize. Under the tariff, the price Jordanian consumers pay for a ton of maize becomes $ and Jordan will import tons of maize. Use the following graph to show the effects of the $120 tariff. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 1280 1220 1160 1100 1040 980 920 860 800 740 680 0 Domestic Demand 25 50 Domestic Supply 75 100 125 150 175 QUANTITY (Tons of maize) 200 PW 225 250 World Price Plus Tariff CS 842 PS / Government Revenue. DWL ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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