The following graph shows the domestic supply of and demand for maize in Bangladesh. The world price (Pw) of maize is $255 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 455 Domestic Demand Domestic Supply 430 405 380 355 330 305 280 Pw 255 230 205 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of maize) If Bangladesh is open to international trade in maize without any restrictions, it will import 300 tons of maize. Suppose the Bangladeshi government wants to reduce imports to exactly 100 tons of maize to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Bangladeshi government. PRICE (Dollars per ton)

The following graph shows the domestic supply of and demand for maize in Bangladesh. The world price (Pw) of maize is $255 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 455 Domestic Demand Domestic Supply 430 405 380 355 330 305 280 Pw 255 230 205 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of maize) If Bangladesh is open to international trade in maize without any restrictions, it will import 300 tons of maize. Suppose the Bangladeshi government wants to reduce imports to exactly 100 tons of maize to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Bangladeshi government. PRICE (Dollars per ton)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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