The following graph shows the domestic supply of and demand for soybeans in Zambia. Zambia is open to international trade of soybeans without any restrictions. The world price (Pw) of soybeans is $550 per ton and is represented by the horizontal black line. Throughout this problem, 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. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per ton) 1000 950 900 850 800 750 700 650 600 550 500 Supply X Demand P W I I 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Thousands of tons of soybeans) Graph Input Tool Market for Soybeans in Zambia Price (Dollars per ton) Domestic Demand (Thousands of tons of soybeans) If Zambia is open to international trade of soybeans without any restrictions, it will import the full value for your answer, accounting for the horizontal axis units.) 900 80 Domestic Supply (Thousands of tons of soybeans) (? 320 tons of soybeans. (Note: Be sure to enter Suppose the Zambian government wants to reduce imports to exactly 80,000 tons of soybeans to help domestic producers. A tariff of $ ton will achieve this. per
The following graph shows the domestic supply of and demand for soybeans in Zambia. Zambia is open to international trade of soybeans without any restrictions. The world price (Pw) of soybeans is $550 per ton and is represented by the horizontal black line. Throughout this problem, 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. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per ton) 1000 950 900 850 800 750 700 650 600 550 500 Supply X Demand P W I I 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Thousands of tons of soybeans) Graph Input Tool Market for Soybeans in Zambia Price (Dollars per ton) Domestic Demand (Thousands of tons of soybeans) If Zambia is open to international trade of soybeans without any restrictions, it will import the full value for your answer, accounting for the horizontal axis units.) 900 80 Domestic Supply (Thousands of tons of soybeans) (? 320 tons of soybeans. (Note: Be sure to enter Suppose the Zambian government wants to reduce imports to exactly 80,000 tons of soybeans to help domestic producers. A tariff of $ ton will achieve this. per
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following graph shows the domestic supply of and demand for soybeans in Zambia. Zambia is open to international trade of soybeans without any
restrictions. The world price (Pw) of soybeans is $550 per ton and is represented by the horizontal black line. Throughout this problem, 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.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
PRICE (Dollars per ton)
1000
950
900
850
800
750
700
650
600
550
500
X
++.
1
Supply
Demand
Pw
W
I
0 40 80 120 160 200 240 280 320 360 400
QUANTITY (Thousands of tons of soybeans)
A tariff set at this level would raise $
Graph Input Tool
Market for Soybeans in Zambia
Price
(Dollars per ton)
Domestic Demand
(Thousands of tons
of soybeans)
If Zambia is open to international trade of soybeans without any restrictions, it will import
the full value for your answer, accounting for the horizontal axis units.)
900
80
in revenue for the Zambian government.
Domestic Supply
(Thousands of tons
of soybeans)
(?)
320
Suppose the Zambian government wants to reduce imports to exactly 80,000 tons of soybeans to help domestic producers. A tariff of $
ton will achieve this.
tons of soybeans. (Note: Be sure to enter
per
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