Attempts 0.5 3. Tariffs Suppose Bangladesh is open to free trade in the world market for oranges. Because of Bangladesh's small size, the demand for and supply of oranges in Bangladesh do not affect the world price. The following graph shows the domestic oranges market in Bangladesh. The world price of oranges is Pw =$800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). ? PRICE (Dollars per ton) 1280 Domestic Demand 1220 1160 1100 1040 980 920 860 800 740 Keep the Highest 0.5/2 680 0 Domestic Supply 14 16 2 4 6 8 10 12 QUANTITY (Thousands of tons of oranges) 18 20 CS PS f Bangladesh allows international trade in the market for oranges, it will import Show the effects of the $60 tariff on the following graph. tons of oranges. Now suppose the Bangladeshi government decides to impose a tariff of $60 on each imported ton of oranges. After the tariff, the price Bangladeshi consumers pay for a ton of oranges is S and Bangladesh will import tons of oranges. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer w

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Attempts 0.5
3. Tariffs
Suppose Bangladesh is open to free trade in the world market for oranges. Because of Bangladesh's small size, the demand for and supply of oranges
in Bangladesh do not affect the world price. The following graph shows the domestic oranges market in Bangladesh. The world price of oranges is Pw
= $800 per ton.
On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the
free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS).
PRICE (Dollars per ton)
1280
1220
1160
1100
1040
980
920
860
800
740
680
0
Keep the Highest 0.5 / 2
Domestic Demand
2
wala
Domestic Supply
4 6 8 10
12
14 16
QUANTITY (Thousands of tons of oranges)
18
20
Show the effects of the $60 tariff on the following graph.
CS
If Bangladesh allows international trade in the market for oranges, it will import
PS
Now suppose the Bangladeshi government decides to impose a tariff of $60 on each imported ton of oranges. After the tariff, the price Bangladeshi
consumers pay for a ton of oranges is $
, and Bangladesh will import
tons of oranges.
tons of oranges.
Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer
ith the tiff
doilet.
Transcribed Image Text:Attempts 0.5 3. Tariffs Suppose Bangladesh is open to free trade in the world market for oranges. Because of Bangladesh's small size, the demand for and supply of oranges in Bangladesh do not affect the world price. The following graph shows the domestic oranges market in Bangladesh. The world price of oranges is Pw = $800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). PRICE (Dollars per ton) 1280 1220 1160 1100 1040 980 920 860 800 740 680 0 Keep the Highest 0.5 / 2 Domestic Demand 2 wala Domestic Supply 4 6 8 10 12 14 16 QUANTITY (Thousands of tons of oranges) 18 20 Show the effects of the $60 tariff on the following graph. CS If Bangladesh allows international trade in the market for oranges, it will import PS Now suppose the Bangladeshi government decides to impose a tariff of $60 on each imported ton of oranges. After the tariff, the price Bangladeshi consumers pay for a ton of oranges is $ , and Bangladesh will import tons of oranges. tons of oranges. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer ith the tiff doilet.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

Blurred answer
Knowledge Booster
Absolute Advantage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education