The following graph shows the domestic demand for and supply of oranges in Zambia. The world price (Pw) of oranges is $525 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) 845 Domestic Demand 805 765 725 685 645 605 + 565 525 485 445 1 I 0 10 20 Domestic Supply 30 40 50 60 70 QUANTITY (Tons of oranges) W 80 90 100 (?) If Zambia is open to international trade in oranges without any restrictions, it will import tons of oranges. K

The following graph shows the domestic demand for and supply of oranges in Zambia. The world price (Pw) of oranges is $525 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) 845 Domestic Demand 805 765 725 685 645 605 + 565 525 485 445 1 I 0 10 20 Domestic Supply 30 40 50 60 70 QUANTITY (Tons of oranges) W 80 90 100 (?) If Zambia is open to international trade in oranges without any restrictions, it will import tons of oranges. K

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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