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If Venezuela is open to international trade in oranges without any restrictions, it will import Suppose the Venezuelan government wants to reduce imports to exactly 80 tons of oranges to help domestic producers. A tariff of s will achieve this. A tariff set at this level would raise tons of oranges. in revenue for the Venezuelan government. per t

If Venezuela is open to international trade in oranges without any restrictions, it will import Suppose the Venezuelan government wants to reduce imports to exactly 80 tons of oranges to help domestic producers. A tariff of s will achieve this. A tariff set at this level would raise tons of oranges. in revenue for the Venezuelan government. per t

Principles of Economics 2e
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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If Venezuela is open to international trade in oranges without any restrictions, it will import Suppose the Venezuelan government wants to reduce imports to exactly 80 tons of oranges to help domestic producers. A tariff of will achieve this. A tariff set at this level would raise $ tons of oranges. in revenue for the Venezuelan government. per ton
Transcribed Image Text:If Venezuela is open to international trade in oranges without any restrictions, it will import Suppose the Venezuelan government wants to reduce imports to exactly 80 tons of oranges to help domestic producers. A tariff of will achieve this. A tariff set at this level would raise $ tons of oranges. in revenue for the Venezuelan government. per ton
4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of oranges in Venezuela. The world price (Pw) of oranges is $530 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 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. PRICE (Dollars per ton) 935 Domestic Demand 1190 845 800 755 710 665 620 575 530 485 0 40 80 Domestic Supply 120 160 200 240 280 320 360 400 QUANTITY (Tons of oranges) If Venezuela is open to international trade in oranges without any restrictions, it will import tons of oranges.
Transcribed Image Text:4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of oranges in Venezuela. The world price (Pw) of oranges is $530 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 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. PRICE (Dollars per ton) 935 Domestic Demand 1190 845 800 755 710 665 620 575 530 485 0 40 80 Domestic Supply 120 160 200 240 280 320 360 400 QUANTITY (Tons of oranges) If Venezuela is open to international trade in oranges without any restrictions, it will import tons of oranges.
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