4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 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.
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 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.
Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter34: Globalization And Protectionism
Section: Chapter Questions
Problem 55P: Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply...
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![00
80
40
PRICE (Dollars per ton)
4. Effects of a tariff on international trade
The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 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.
1080
Domestic Demand
Domestic Supply
1040
000
096
920
880
840
008
720
680
007
240
QUANTITY (Tons of oranges)
120
280
320
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Transcribed Image Text:00
80
40
PRICE (Dollars per ton)
4. Effects of a tariff on international trade
The following graph shows the domestic supply of and demand for oranges in Guatemala. The world price (Pw) of oranges is $760 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.
1080
Domestic Demand
Domestic Supply
1040
000
096
920
880
840
008
720
680
007
240
QUANTITY (Tons of oranges)
120
280
320
MacBook Pro
G Search or type URL
->
%23
2.
6
R.
H.
C.
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B.
PRICE (Dollars per ton)
1080
Domestic Demand
Domestic Supply
1040
00 0n
096
920
880
840
09
720
680
+
280
240
0 40
120
320
000
QUANTITY (Tons of oranges)
If Guatemala is open to international trade in oranges without any restrictions, it will import
tons of oranges.
Suppose the Guatemalan government wants to reduce imports to exactly 160 tons of oranges to help domestic producers. A tariff of $
per ton
will achieve this.
A tariff set at this level would raise $
in revenue for the Guatemalan government.
Grade It Now
Save & Continue
Continue without saving
MacBook Pro
G Search or type URL
->
3.
H.
MI](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99f4c97a-0bf0-4f8e-9113-94f99aec5f70%2Fec4d71f4-55ee-4001-b52b-eceaa34c8ee6%2F8tmqax7.jpeg&w=3840&q=75)
Transcribed Image Text:00
B.
PRICE (Dollars per ton)
1080
Domestic Demand
Domestic Supply
1040
00 0n
096
920
880
840
09
720
680
+
280
240
0 40
120
320
000
QUANTITY (Tons of oranges)
If Guatemala is open to international trade in oranges without any restrictions, it will import
tons of oranges.
Suppose the Guatemalan government wants to reduce imports to exactly 160 tons of oranges to help domestic producers. A tariff of $
per ton
will achieve this.
A tariff set at this level would raise $
in revenue for the Guatemalan government.
Grade It Now
Save & Continue
Continue without saving
MacBook Pro
G Search or type URL
->
3.
H.
MI
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