007F.PRICE (Dollars per ton)4. Effects of a tariff on international tradeThe following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domesticsuppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.2.Domestic DemandDomestic Supply77074071068065062006P,530MacBook ProSearch or type URL4.519. PRICE (Dollars per ton)3013Homework (Ch 09)Domestic DemandDomestic Supply770740710650620065300000906QUANTITY (Tons of soybeans)120150180210240270If Honduras is open to international trade in soybeans without any restrictions, it will importtons of soybeans.Suppose the Honduran government wants to reduce imports to exactly 120 tons of soybeans to help domestic producers. A tariff of $per tonwill achieve this.A tariff set at this level would raise $in revenue for the Honduran government.Grade It NowSave & ContinueContinue without savingMacBook ProG Search or type URL08.

In an open economy, buyers and producers have an incentive to gain more from making economic…

The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 800 Domestic Demand Domestic Supply

The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 800 Domestic Demand Domestic Supply

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics Question
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