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4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. Honduras is open to international trade of soybeans without any restrictions. The world price (Pw) of soybeans is $520 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 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 an 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) 880 835 790 745 700 655 610 565 520 475 430 + I I Supply Demand 1 P W 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Thousands of tons of soybeans) Graph Input Tool Market for Soybeans in Honduras Price (Dollars per ton) Domestic Demand (Thousands of tons of soybeans) A tariff set at this level would raise $ 790 60 Domestic Supply (Thousands of tons of soybeans) (?) 240 If Honduras is open to international trade of soybeans without any restrictions, it will import tons of soybeans. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Honduran government wants to reduce imports to exactly 60,000 tons of soybeans t help domestic producers. A tariff of $ per ton will achieve this. in revenue for the Honduran government

4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. Honduras is open to international trade of soybeans without any restrictions. The world price (Pw) of soybeans is $520 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 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 an 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) 880 835 790 745 700 655 610 565 520 475 430 + I I Supply Demand 1 P W 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Thousands of tons of soybeans) Graph Input Tool Market for Soybeans in Honduras Price (Dollars per ton) Domestic Demand (Thousands of tons of soybeans) A tariff set at this level would raise $ 790 60 Domestic Supply (Thousands of tons of soybeans) (?) 240 If Honduras is open to international trade of soybeans without any restrictions, it will import tons of soybeans. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Honduran government wants to reduce imports to exactly 60,000 tons of soybeans t help domestic producers. A tariff of $ per ton will achieve this. in revenue for the Honduran government

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
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4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. Honduras is open to international trade of soybeans without any restrictions. The world price (Pw) of soybeans is $520 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) 880 835 790 745 700 655 610 565 520 475 430 + I I Supply Demand 1 P W 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Thousands of tons of soybeans) Graph Input Tool Market for Soybeans in Honduras Price (Dollars per ton) Domestic Demand (Thousands of tons of soybeans) A tariff set at this level would raise $ 790 60 Domestic Supply (Thousands of tons of soybeans) (?) 240 If Honduras is open to international trade of soybeans without any restrictions, it will import tons of soybeans. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Honduran government wants to reduce imports to exactly 60,000 tons of soybeans to help domestic producers. A tariff of $ per ton will achieve this. in revenue for the Honduran government.
Transcribed Image Text:4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. Honduras is open to international trade of soybeans without any restrictions. The world price (Pw) of soybeans is $520 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) 880 835 790 745 700 655 610 565 520 475 430 + I I Supply Demand 1 P W 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Thousands of tons of soybeans) Graph Input Tool Market for Soybeans in Honduras Price (Dollars per ton) Domestic Demand (Thousands of tons of soybeans) A tariff set at this level would raise $ 790 60 Domestic Supply (Thousands of tons of soybeans) (?) 240 If Honduras is open to international trade of soybeans without any restrictions, it will import tons of soybeans. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Honduran government wants to reduce imports to exactly 60,000 tons of soybeans to help domestic producers. A tariff of $ per ton will achieve this. in revenue for the Honduran government.
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