If Honduras is open to international trade in soybeans without any restrictions, it will import tons of soybeans. Suppose the Honduran government wants to reduce imports to exactly 200 tons of soybeans to help domestic producers. A tariff of $ per ton will achieve this. A tar ff set at this level would raise S in revente for the Honduran government.

Economics: Private and Public Choice (MindTap Course List)
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Chapter18: Gaining From International Trade
Section: Chapter Questions
Problem 4CQ
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The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $535 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.
Domestic Demand
Domestic Supply/
75
CUANTITY (Tone of soytears
Focus
D 國
nere to search
TX
器 投 孔
Transcribed Image Text:The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $535 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. Domestic Demand Domestic Supply/ 75 CUANTITY (Tone of soytears Focus D 國 nere to search TX 器 投 孔
目===|m。
T No Spac.. Heading 1
Heading 2
Title
1 Normal
J ab x, x A A.
Font
Paragraph
Styles
If Honduras is open to international trade in soybeans without any restrictions, it will import
tons of soybeans.
Suppose the Honduran government wants to reduce imports to exactly 200 tons of soybeans to help domestic producers. A tariff of
will achieve this.
per ton
Atarf set at this level would raise S
In revene for the Honduran government.
Transcribed Image Text:目===|m。 T No Spac.. Heading 1 Heading 2 Title 1 Normal J ab x, x A A. Font Paragraph Styles If Honduras is open to international trade in soybeans without any restrictions, it will import tons of soybeans. Suppose the Honduran government wants to reduce imports to exactly 200 tons of soybeans to help domestic producers. A tariff of will achieve this. per ton Atarf set at this level would raise S In revene for the Honduran government.
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