4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for maize in Burundi. Burundi is open to international trade of maize without any restrictions. The world price (Pw) of maize is $260 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 maize and that there are no transportation or transaction costs associated with international trade in maize. 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) 530 500 Graph Input Tool Market for Maize in Burundi Supply Price 470 (Dollars per ton) 470 + I Domestic Demand 80 440 410 380 (Thousands of tons of maize) Domestic Supply (Thousands of tons of maize) 320 350 320 290 Demand PW 260 230 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Thousands of tons of maize) If Burundi is open to international trade of maize without any restrictions, it will import value for your answer, accounting for the horizontal axis units.) ? tons of maize. (Note: Be sure to enter the full Suppose the Burundian government wants to reduce imports to exactly 80,000 tons of maize to help domestic producers. A tariff of $ will achieve this. per ton A tariff set at this level would raise in revenue for the Burundian government.
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for maize in Burundi. Burundi is open to international trade of maize without any restrictions. The world price (Pw) of maize is $260 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 maize and that there are no transportation or transaction costs associated with international trade in maize. 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) 530 500 Graph Input Tool Market for Maize in Burundi Supply Price 470 (Dollars per ton) 470 + I Domestic Demand 80 440 410 380 (Thousands of tons of maize) Domestic Supply (Thousands of tons of maize) 320 350 320 290 Demand PW 260 230 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Thousands of tons of maize) If Burundi is open to international trade of maize without any restrictions, it will import value for your answer, accounting for the horizontal axis units.) ? tons of maize. (Note: Be sure to enter the full Suppose the Burundian government wants to reduce imports to exactly 80,000 tons of maize to help domestic producers. A tariff of $ will achieve this. per ton A tariff set at this level would raise in revenue for the Burundian government.
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 1PA
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Transcribed Image Text:4. Effects of a tariff on international trade
The following graph shows the domestic supply of and demand for maize in Burundi. Burundi is open to international trade of maize without any
restrictions. The world price (Pw) of maize is $260 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 maize and that there are no transportation or transaction costs associated
with international trade in maize. 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)
530
500
Graph Input Tool
Market for Maize in Burundi
Supply
Price
470
(Dollars per ton)
470
+
I
Domestic Demand
80
440
410
380
(Thousands of tons
of maize)
Domestic Supply
(Thousands of tons
of maize)
320
350
320
290
Demand
PW
260
230
0
40 80 120 160 200 240 280 320 360 400
QUANTITY (Thousands of tons of maize)
If Burundi is open to international trade of maize without any restrictions, it will import
value for your answer, accounting for the horizontal axis units.)
?
tons of maize. (Note: Be sure to enter the full
Suppose the Burundian government wants to reduce imports to exactly 80,000 tons of maize to help domestic producers. A tariff of $
will achieve this.
per ton
A tariff set at this level would raise
in revenue for the Burundian government.
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