If New Zealand is open to international trade of oranges without any restrictions, it will import tons of oranges. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the New Zealand government wants to reduce imports to exactly 80,000 tons of oranges to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the New Zealand government.
If New Zealand is open to international trade of oranges without any restrictions, it will import tons of oranges. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the New Zealand government wants to reduce imports to exactly 80,000 tons of oranges to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the New Zealand government.
Chapter20: International Trade
Section: Chapter Questions
Problem 11QP
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Transcribed Image Text:If New Zealand is open to international trade of oranges without any restrictions, it will import
tons of oranges. (Note: Be sure to enter
the full value for your answer, accounting for the horizontal axis units.)
Suppose the New Zealand government wants to reduce imports to exactly 80,000 tons of oranges to help domestic producers. A tariff of $
per
ton will achieve this.
A tariff set at this level would raise $
in revenue for the New Zealand government.
Transcribed Image Text:The following graph shows the domestic supply of and demand for oranges in New Zealand. New Zealand is open to international trade of oranges
without any restrictions. The world price (Pw) of oranges is $800 per ton and is represented by the horizontal black line. Throughout this problem,
assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction
costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before
any exporting or importing takes place.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
Graph Input Tool
1200
Market for Oranges in New Zealand
1150
| Price
(Dollars per ton)
Supply
1,000
1100
Domestic Demand
(Thousands of tons
of oranges)
Domestic Supply
(Thousands of tons
of oranges)
1050
80
120
1000
O 950
900
850
Demand
Pw
800
750
700
20
40 60 80 100 120 140 160 180 200
QUANTITY (Thousands of tons of oranges)
PRI CE (Dollars per ton)
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