Use the following graph to show the effects of the $200 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 surpluswith the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (squaresymbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areasrepresenting deadweight loss (DWL) caused by the tariff.PRICE (Dollars per ton)1200 Domestic Demand11001000900800700800500400300+20040Domestic SupplyQUANTITY (Tons of wheat)Consumer SurplusProducer SurplusGovernment Revenue1400160PW200World Price Plus TariffGovernment RevenueComplete the following table to summarize your results from the previous two graphs.With Free Trade(Dollars)With a Tariff(Dollars)DWLBased on your analysis, as a result of the tariff, Guatemala's consumer surplusby, and the government collectsproducer surplusin revenue. Therefore, the net welfare effect is aof Suppose Guatemala is open to free trade in the world market for wheat. Since Guatemala is small relative to the international market, the demand forand supply of wheat in Guatemala have no impact on the world price. The following graph shows the domestic market for wheat in Guatemala. Theworld price of a ton of wheat is Pw = $400.On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at thefree-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS).(?)PRICE (Dollars per ton)120011001000+900800700600500400300-2000Domestic Demand20 40Domestic Supply6080 100 120 140QUANTITY (Tons of wheat)PW160 180 200ACSTPSBecause Guatemala participates in international trade in the market for wheat, it will importtons of wheat.Now suppose the Guatemalan government decides to impose a tariff of $200 on each imported ton of wheat. Under the tariff, the price Guatemalanconsumers pay for a ton of wheat becomes Sand Guatemala will importtons of wheat.

Answered: Image /qna-images/answer/c6af4317-0243-4918-b3dc-578b829ed44e.jpg

Suppose Guatemala is open to free trade in the world market for wheat. Since Guatemala is small relative to the international market, the demand for and supply of wheat in Guatemala have no impact on the world price. The following graph shows the domestic market for wheat in Guatemala. The world price of a ton of wheat is Pw = $400. 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 per ton) 1200 1100 1000 900 800 700 600 500 400 300 200 Domestic Demand 0 20 40 Domestic Supply 60 80 100 120 140 160 180 200 QUANTITY (Tons of wheat) CS PS Because Guatemala participates in international trade in the market for wheat, it will import tons of wheat. Now suppose the Guatemalan government decides to impose a tariff of $200 on each imported ton of wheat. Under the tariff, the price Guatemalan consumers pay for a ton of wheat becomes S , and Guatemala will import tons of wheat.

Suppose Guatemala is open to free trade in the world market for wheat. Since Guatemala is small relative to the international market, the demand for and supply of wheat in Guatemala have no impact on the world price. The following graph shows the domestic market for wheat in Guatemala. The world price of a ton of wheat is Pw = $400. 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 per ton) 1200 1100 1000 900 800 700 600 500 400 300 200 Domestic Demand 0 20 40 Domestic Supply 60 80 100 120 140 160 180 200 QUANTITY (Tons of wheat) CS PS Because Guatemala participates in international trade in the market for wheat, it will import tons of wheat. Now suppose the Guatemalan government decides to impose a tariff of $200 on each imported ton of wheat. Under the tariff, the price Guatemalan consumers pay for a ton of wheat becomes S , and Guatemala will import tons of wheat.

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 a country opens up for trade, and it ends up importing a good, the net effect of importing that good will be a gain for the economy. the country could end up having a net gain or loss from importing that good, depending on how elastic the curves are. the net effect of importing that good will be a loss for the economy. the country will have to export some other good in order to compensate for the losses incurred by importing this good.
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. Use the following graph to show the effects of the $ 10 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.
Please answer only if you are sure about the correct answers:
The graph below shows domestic supply and demand for purses in the United States. Suppose that at any price, Mexico has decided they will supply 30 purses to the U.S. market. The "Domestic Supply + Imports" curve is misplaced. Re-position the curve to reflect the provided information. Provide your answer below: 150 P Demand 100- Domestic Supply (40,$50) -50 Domestic Supply+imports (100,$50) 50 100 150
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3. Welfare effects of a tariff in a small country Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia's small size, the demand for and supply of wheat in Bolivia do not affect the world price. The following graph shows the domestic wheat market in Bolivia. The world price of wheat is Pw = $250 per ton. 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). Domestic Supply 460 Domestic Demand 430 cs 400 370 340 PS 310 280 250 220 190 160 0 25 50 75 100 125 150 175 200 225 250 QUANTITY (Tons of wheat) If Bolivia allows international trade in the market for wheat, it will import tons of wheat. Now suppose the Bolivian government decides to impose a tariff of $30 on each imported ton of wheat. After the tariff, the price Bollvian consumers…
The following graph shows the domestic demand for and supply of oranges in Guatemala. The world price (Pw) of oranges is $550 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 oranges and that there are no transportation or transaction costs associated with International trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 820 790 760 730 700 670 640 610 580 550 520 0 Domestic Demand 1 Domestic Supply PW 30 60 90 120 150 180 210 240 270 300 QUANTITY (Tons of oranges) A tariff set at this level would raise (~.) ? If Guatemala is open to International trade In oranges without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 60 tons of oranges to help…