**Graph Description:**The graph illustrates the market for limes in Zambia, displaying the domestic demand and domestic supply curves. - **Y-Axis:** Represents the price in dollars per ton.- **X-Axis:** Represents the quantity in tons of limes.Two key curves are plotted:1. **Domestic Demand (blue line):** This curve slopes downward from left to right, indicating that as the price decreases, the quantity demanded increases.2. **Domestic Supply (orange line):** This curve slopes upward from left to right, showing that as the price increases, the quantity supplied also increases.The two curves intersect at an equilibrium point. A horizontal line labeled $ P_W $ represents the world price, set below the domestic equilibrium price, indicating the price at which limes can be imported.**Text:**If Zambia is open to international trade in limes without any restrictions, it will import ____ tons of limes.Suppose the Zambian government wants to reduce imports to exactly 40 tons of limes to help domestic producers. A tariff of $____ per ton will achieve this.A tariff set at this level would raise $____ in revenue for the Zambian government.

Equilibrium is achieved at the output level where quantity supplied equals quantity demanded.

PRICE (Dollars per ton) 1190 Domestic Demand 1140 1090 + 1040 990 940 890 840 790 740 690 0 10 20 30 40 50 60 70 QUANTITY (Tons of limes) Domestic Supply 80 90 A tariff set at this level would raise $ W 100 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 40 tons of limes to help domestic producers. A tariff of s achieve this. tons of limes. in revenue for the Zambian government. per ton wil

PRICE (Dollars per ton) 1190 Domestic Demand 1140 1090 + 1040 990 940 890 840 790 740 690 0 10 20 30 40 50 60 70 QUANTITY (Tons of limes) Domestic Supply 80 90 A tariff set at this level would raise $ W 100 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 40 tons of limes to help domestic producers. A tariff of s achieve this. tons of limes. in revenue for the Zambian government. per ton wil

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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