ofThe following graph shows the domestic supply of and demand for oranges in Jordan. The world price (Pw) of oranges is $780 per ton and isrepresented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the worldprice of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domesticsuppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.PRICE (Dollars perton)12201165111010551000045 +890835780725670Domestic Demand03060Domestic Supply800 120 150 180 210QUANTITY (Tons of nrannee)W240 270 300 PRICE (Dollars9458008357807256700 30 0000 120 150 180 210 240 270 300QUANTITY (Tons of oranges)If Jordan is open to international trade in oranges without any restrictions, it will importSuppose the Jordanian government wants to reduce imports to exactly 120 tons of oranges to help domestic producers. A tariff of Swill achieve this.A tariff set at this level would raise $tons of oranges.in revenue for the Jordanian government.per ton

Import= Demand - Supply. When domestic demand is greater than domestic supply , then imports are…

The following graph shows the domestic supply of and demand for oranges in Jordan. The world price (Pw) of oranges is $780 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 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 perton) 1220 1165 1110 1066 1000 945 000 835 700 725 670 Domestic Demand 120 150 Domestic Supply 100 210 PW 300 270 240

The following graph shows the domestic supply of and demand for oranges in Jordan. The world price (Pw) of oranges is $780 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 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 perton) 1220 1165 1110 1066 1000 945 000 835 700 725 670 Domestic Demand 120 150 Domestic Supply 100 210 PW 300 270 240

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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