Sophia ✓My HomeCoursesWyoWebCatalog and Study ToolsRental OptionsCollege Success TipsCareer Success Tips? Help«Give FeedbackCENGAGE MINDTAPHomework (Ch 09)4. Effects of a tariff on international tradePRICE (Dollars per ton)525495465The following graph shows the domestic supply of and demand for maize in Sudan. The world price (Pw) of maize is $255 per ton and is representedby the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of maizeand that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfydomestic demand as much as possible before any exporting or importing takes place.435405375345315285Homework (Ch 09)2552250 1020Domestic DemandDomestic Supplyx4050 60 70QUANTITY (Tons of maize)music ✓cody ✓ Engl 1010 WyobSearch results for 'The following graph s...30ng.cengage.com80+I90Pw100C MindTap - Cengage Learning?+ 0= Orange: Micro & Macro. Chapter 9 【App...Q Search this courseXA-ZbongoA+O Sophia ✓My HomeCoursesWyoWebCatalog and Study ToolsRental OptionsCollege Success TipsCareer Success Tips? Help«Give FeedbackCENGAGE MINDTAPHomework (Ch 09)PRICE (Dollars per ton)495465435405375345315285255225HOHomework (Ch 09)0 10+2040 50 60 70QUANTITY (Tons of maize)30music ✓cody ✓ Engl 1010 WyobSearch results for 'The following graph s...A tariff set at this level would raise $8090ng.cengage.comP.W100If Sudan is open to international trade in maize without any restrictions, it will importC MindTap - Cengage LearningSuppose the Sudanese government wants to reduce imports to exactly 20 tons of maize to help domestic producers. A tariff of $achieve this.in revenue for the Sudanese government.tons of maize.Grade It Nowper ton willSave & ContinueContinue without saving+ 0= Orange: Micro & Macro. Chapter 9 【App...Q Search this courseXA-ZbongoA+

Tariff Tariffs are taxes levied on imported goods or services. Tariffs are a common feature of international trade. The major reasons for raising tariffs include reducing imports of goods and services besides raising their prices, as well as protecting domestic producers. Tariffs have the possibility of safeguarding new and developing industries. Individuals will draw more consumers to domestically produced goods and encourage the development of companies in emerging industries. Given data:- Maize's world price (Pw) is $255 per ton.With the above-given pieces of information:- The below graph shows demand, supply, Tariff, and inflation. The quantity demanded by each country has no effect on the global price of maize. There are absolutely no public transport or transaction charges related to the international maize trade. Domestic suppliers will try to meet as much domestic demand as conceivable before exporting or importing.(A) Sudan will import 300 tons of maize. (B) A tariff of $50 will achieve this. for calculating the tariff = The distancing of A B= =305-255 =$50 (C) A tariff set at this level would raise $5,000 in revenue for the Sudan government. Tax revenue=tariff×imports =550×300-200=$5000

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4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for maize in Sudan. The world price (Pw) of maize is $255 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 maiz and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satis domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 525 Domestic Demand 495 465 435 405 375 345 315 285 255 225 010 20 Domestic Supply 30 40 50 60 70 QUANTITY (Tons of maize) 80 W 90 100

4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for maize in Sudan. The world price (Pw) of maize is $255 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 maiz and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satis domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 525 Domestic Demand 495 465 435 405 375 345 315 285 255 225 010 20 Domestic Supply 30 40 50 60 70 QUANTITY (Tons of maize) 80 W 90 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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