Homework Help is Here – Start Your Trial Now!
Business
Economics
se the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer s th the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square -mbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas presenting deadweight loss (DWL) caused by the tariff. PRICE (Dollars perton) 480 430 400 370 340 310 280 250 220 100 100 0 Domestic Demand 25 50 Domestic Supply + 75 100 125 150 175 QUANTITY (Tons of soybeans) PW 200 225 250 ➡+ World Price Plus Tariff CS 4·* 4+ PS Government Revenue DWL

se the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer s th the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square -mbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas presenting deadweight loss (DWL) caused by the tariff. PRICE (Dollars perton) 480 430 400 370 340 310 280 250 220 100 100 0 Domestic Demand 25 50 Domestic Supply + 75 100 125 150 175 QUANTITY (Tons of soybeans) PW 200 225 250 ➡+ World Price Plus Tariff CS 4·* 4+ PS Government Revenue DWL

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
Please answer everything in the photos.
Use the following graph to show the effects of the $30 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 perton) 480 Domestic Demand 430 400 S 370 340 310 280 250 220 190 100 0 25 Consumer Surplus Producer Surplus Government Revenue 50 75 100 125 150 175 200 225 250 QUANTITY (Tons of soybeans) Domestic Supply W 0 by by $ ➡+ World Price Plus Tariff Based on your analysis, as a result of the tariff, Zambia's consumer surplus and the government collects $ Complete the following table to summarize your results from the previous two graphs. With Free Trade (Dollars) With a Tariff (Dollars) CS PS Government Revenue DWL by S producer surplus in revenue. Therefore, the net welfare effect is a * of
Transcribed Image Text:Use the following graph to show the effects of the $30 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 perton) 480 Domestic Demand 430 400 S 370 340 310 280 250 220 190 100 0 25 Consumer Surplus Producer Surplus Government Revenue 50 75 100 125 150 175 200 225 250 QUANTITY (Tons of soybeans) Domestic Supply W 0 by by $ ➡+ World Price Plus Tariff Based on your analysis, as a result of the tariff, Zambia's consumer surplus and the government collects $ Complete the following table to summarize your results from the previous two graphs. With Free Trade (Dollars) With a Tariff (Dollars) CS PS Government Revenue DWL by S producer surplus in revenue. Therefore, the net welfare effect is a * of
Suppose Zambia is open to free trade in the world market for soybeans. Since Zambia is small relative to the international market, the demand for and supply of soybeans in Zambia have no impact on the world price. The following graph shows the domestic market for soybeans in Zambia. The world price of a ton of soybeans is Pw= $250. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). ? PRICE (Dollars perton) 460 430 400 370 340 310 280 - 250 220 190 160 0 Domestic Demand 25 Domestic Supply P. SAC 50 75 100 125 150 175 200 225 250 QUANTITY (Tons of soybeans) + CS PS Because Zambia participates in international trade in the market for soybeans, it will import tons of soybeans. Now suppose the Zambian government decides to impose a tariff of $30 on each imported ton of soybeans. Under the tariff, the price Zambian consumers pay for a ton of soybeans becomes $ and Zambia will import tons of soybeans.
Transcribed Image Text:Suppose Zambia is open to free trade in the world market for soybeans. Since Zambia is small relative to the international market, the demand for and supply of soybeans in Zambia have no impact on the world price. The following graph shows the domestic market for soybeans in Zambia. The world price of a ton of soybeans is Pw= $250. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). ? PRICE (Dollars perton) 460 430 400 370 340 310 280 - 250 220 190 160 0 Domestic Demand 25 Domestic Supply P. SAC 50 75 100 125 150 175 200 225 250 QUANTITY (Tons of soybeans) + CS PS Because Zambia participates in international trade in the market for soybeans, it will import tons of soybeans. Now suppose the Zambian government decides to impose a tariff of $30 on each imported ton of soybeans. Under the tariff, the price Zambian consumers pay for a ton of soybeans becomes $ and Zambia will import tons of soybeans.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Free Trade
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS