If Bangladesh is open to international trade in maize without any restrictions, it will importSuppose the Bangladeshi government wants to reduce imports to exactly 100 tons of maize to help domestic producers. A tariff of Swill achieve this.A tariff set at this level would raise $in revenue for the Bangladeshi government.tons of maize.per ton 4. Effects of a tariff on international tradeThe following graph shows the domestic demand for and supply of maize in Bangladesh. The world price (Pw) of maize is $240 per ton and isdisplayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demandedby any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with internationaltrade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.PRICE (Dollars per ton)440415390365340315290266240190Domestic DemandiDomestic SupplyXP050100160 200 250 300 350 400 450 500QUANTITY (Tons of maize)?

This can be defined as terminology that shows the total amount of demand for the commodities and…

If Bangladesh is open to international trade in maize without any restrictions, it will import Suppose the Bangladeshi government wants to reduce imports to exactly 100 tons of maize to help domestic producers. A tariff of S will achieve this. A tariff set at this level would raise $ tons of maize. in revenue for the Bangladeshi government. per ton

If Bangladesh is open to international trade in maize without any restrictions, it will import Suppose the Bangladeshi government wants to reduce imports to exactly 100 tons of maize to help domestic producers. A tariff of S will achieve this. A tariff set at this level would raise $ tons of maize. in revenue for the Bangladeshi government. per ton

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 55P: Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply...

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The country of Pepperland exports steel to the Land of Submarines. Information for the quantity demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in Table 34.6 and Table 34.7. What would be the equilibrium price and quantity in each country in a world without trade? How can you tell? What would be the equilibrium price and quantity in each country if trade is allowed to occur? How can you tell? Sketch two supply and demand diagrams, one for each country, in the situation before trade. On those diagrams, show the equilibrium price and the levels of exports and imports in the world after trade. If the Land of Submarines imposes an anti- dumping import quota of 30, explain in general terms whether it will benefit or injure consumers and producers in each country. Does your general answer change if the Land of Submarines imposes an import quota of 70?
Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply (s) for cameras In Thailand and Japan is described by the following functions: QsT=-5+14P QsJ=-10+14P QdT=60-P QdJ=80-P P is the price measured in a common currency used in both countries, such as the Thai Baht. Compute the equilibrium price (P) and quantities in each country without trade. Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and Imports cameras and in what quantities?
5. You have been asked to quantify the effects of removing a country's tariff on sugar. The ompute its value? nard part of the work is already done: Somebody has estimated how many pouncs Sugar would be produced, consumed, and imported by the country if there were no saber duty. You are given the information shown in the table. Estimated Situation without Tariff Situation with Import Tariff World price $0.10 per pound $0.10 per pound $0.02 per pound $0.12 per pound Tariff $0.10 per pound Domestic price Domestic consumption (billions of pounds per year) Domestic production (billions of pounds per year) Imports (billions of pounds per year) 22 20 8. 16 12 Calculate the following measures: a. The domestic consumers' gain from removing the tariff. b. The domestic producers' loss from removing the tariff. C. The government tariff revenue loss. d. The net effect on national well-being.
5. You have been asked to quantify the effects of removing a country's tariff on sugar. The hard part of the work is already done: Somebody has estimated how many pounds of sugar would be produced, consumed, and imported by the country if there were no sugar duty. You are given the information shown in the table. Situation with Import Tariff Estimated Situation without Tariff World price Tariff $0.10 per pound $0.02 per pound $0.12 per pound $0.10 per pound Domestic price Domestic consumption (billions of pounds per year) Domestic production (billions of pounds per year) Imports (billions of pounds per year) $0.10 per pound 20 22 8 6 12 16 Calculate the following measures: a. The domestic consumers' gain from removing the tariff. b. The domestic producers' loss from removing the tariff. c. The government tariff revenue loss. d. The net effect on national well-being.
4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of lemons in Bangladesh. The world price (Pw) of lemons is $240 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of lemons and that there are no transportation or transaction costs associated with international trade in lemons. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars perton) 400 300 360 340 320 300 280 260 240 220 200 0 Domestic Demand. 50 100 Domestic Supply 300 350 200 250 150 QUANTITY (Tons of lemons) 400 450 500 ?
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Zambia. The world price (Pw) of soybeans is $520 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 920 Domestic Demand Domestic Supply 870 820 770 720 670 620 570 520 470 420 80 100 120 140 QUANTITY (Tons of soybeans) 20 40 60 160 180 200 If Zambia is open to international trade in soybeans without any restrictions, it will import tons of soybeans. Suppose the Zambian government wants to reduce imports to exactly 40 tons of soybeans to help domestic producers. A tariff of S per ton will achieve this. A…
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Venezuela. The world price (Pw) of soybeans is $520 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisty domestic demand as much as possible before any exporting or importing takes place. Domestic Supply 700 Domestic Demand 730 640 10 3D 400 100 IND 200 250 300 300 400 450 s00 QUANTITY (Tons of soybeans) PRICE (Dotars per ton)
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Zambia. The world price (Pw) of soybeans is $530 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 980 Domestic Demand Domestic Supply 930 880 830 780 730 680 630 580 P. 530 480 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of soybeans) PRICE (Dollars per ton)
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Colombia. The world price (Pw) of soybeans is $550 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 soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 830 Domestic Demand 795 760 725 690 585 550 PW 515 Z K 0 30 60 90 120 150 180 210 240 270 300 QUANTITY (Tons of soybeans) 480 Domestic Supply If Colombia is open to international trade in soybeans without any restrictions, it will import A tariff set at this level would raise $ Suppose the Colombian government wants to reduce imports to exactly 120 tons of soybeans to help domestic…
The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price. 12 16987654321 10 G с A Di B E F Domestic supply World price + tariff - World price Domestic demand 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Q Refer to the above figure. The tariff decreases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F. O decreases producer surplus by the area C+D and decreases consumer surplus by the area D + E + F O increases producer surplus by the area C and decreases consumer surplus by the area C+D+E+F O increases producer surplus by the area B + C and decrease consumer surplus by the area D + E + F
3. Welfare effects of a tariff in a small country Suppose Ronduras is open to free trade in the world market for soybeans. Because of Honduras's small size, the demand for and supply of soybeans in Honduras do not affect the world price. The following graph shows the domestic soybeans market in Honduras. The world price of soybeans is Pw = $400 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). 1200 Domestic Demand Domestic Supply 1100 CS 1000 900 PS 800 700 600 500 400 300 200 100 120 140 160 180 200 20 40 60 80 QUANTITY (Tons of soybeans) PRICE (Dollars pe: ton)
8. Which of the following would be a deadweight loss from a tariff? A) The shift of consumer surplus to government B) The increase in producer surplus c) The decrease in consumer surplus D) The decrease in consumer surplus due to a drop in consumption 3|Page 9. Use the graph below and the following information to answer the next question. The world price of soybeans is $2.00 per bushel, and the importing country is small enough not to affect the world price. 2.25 2.00 World price 60 70 130 140 Qimillions bushels Based on Figure above, suppose the government puts a tariff of $0.25 per bushel on soybean imports. How much will the tariff reduce imports? A) Imports will decrease by 10 million bushels. B) Imports will decrease by 20 million bushels. C) Imports will decrease by 60 million bushels. D) Imports will not change after the tariff.