400 Domestic Demand Domestic Supply 460 430 400 370 PS 340 310 280 250 220 180 20 60 QUANTITY (Tons of wheat) 40 80 100 120 140 180 180 200 If New Zealand allows international trade in the market for wheat, it will import tons of wheat. Now suppose the New Zealand government decides to impose a tariff of $60 on each imported ton of wheat. After the tariff, the pr consumers pay for a ton of wheat is and New Zealand will import tons of wheat. PRICE (Dollars perton)
400 Domestic Demand Domestic Supply 460 430 400 370 PS 340 310 280 250 220 180 20 60 QUANTITY (Tons of wheat) 40 80 100 120 140 180 180 200 If New Zealand allows international trade in the market for wheat, it will import tons of wheat. Now suppose the New Zealand government decides to impose a tariff of $60 on each imported ton of wheat. After the tariff, the pr consumers pay for a ton of wheat is and New Zealand will import tons of wheat. PRICE (Dollars perton)
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
Problem 2PA
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In closed economy, the equilibrium price of wheat is $340 and quantity is 100 tons of wheat but in open trade, world price of wheat is $250 which is less than equilibrium price of wheat in New Zealand, so New Zealand import wheat from foreign countries.
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