8   Depict on graph and briefly explain effects of import tariff (economic consequences for the importing country):   Change in consumer surplus (ΔCS); Change in producer surplus (ΔPS); Government revenue; Production distortion, consumption distortion, and total deadweight loss (DWL).

Q3: Using a domestic-market demand- and supply-curve graph,   show the impact of tariff on a small country's import price, domestic demand, domestic supply, import quantity, consumer surplus, producer surplus, government revenue, and total welfare; Is the country unambiguously worse off as a result of the tariff? In the same graph, show how to achieve the same import quantity with an import quota; When would the tariff and the import quota lead to the same amount of welfare change? How will the answer to (a) and (b) change if the country uses a subsidy that is equivalent to the tariff rate to help domestic producers? How would the answers to (a) and (b) change for a large country?   Your answer:

4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for wheat in Bangladesh. The world price (Pw) of wheat is $270 per bushel 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 wheat and that there are no transportation or transaction costs associated with international trade in wheat. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 540 Domestic Demand Domestic Supply 510 480 450 420 390 360 330 300 270 240 PRICE (Dollars per bushel) Pw 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bushels of wheat) 400 bushels of wheat. If Bangladesh is open to international trade in wheat without any restrictions, it will import Suppose the Bangladeshi government wants to reduce imports to exactly 200 bushels of wheat to help domestic producers. A…

Sujee International Trade - End of Chapter Problem The United States is the fifth largest sugar consumer and the fifth largest sugar producer in the world. The U.S. sugar industry has enjoyed trade protection since 1789 when Congress enacted the first tariff against foreign-produced sugar. The accompanying graph depicts the supply and demand for sugar in the United States in 2019. The world price for sugar was $0.12 per pound. a. The United States enacts an import tariff of 6 cents per pound. In the accompanying graph, place the line labeled "World price + tarill" in the graph to reflect this tariff. Price (cesta per pound) 52 54 48 24 18 D 0 B Market for sugar Domestic supply 19 24 Quantity (billions of pounds) CS d. Given the tarill, quantity demanded will be pounds. U.S. imports will therefore be PS e. As a result of the tariff, consumer surplus will economic surplus will GR World Price + tarif b. Next, using the shapes in the graph, shade the areas that represent consumer surplus…