4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for wheat in Bangladesh. The world price (Pw) of wheat is $255 per bushel 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 wheat and that there are no transportation or transaction costs associated with international trade in wheat. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Domestic Supply 415 Domestic Demand 395 t 375 355 t 335 315 295 275 255 235 215 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Bushels of wheat 315 295 275 255 235 215 0 40 80 120 160 200 240 280 320 300 400 QUANTITY (Bushels of wheat I bushels of wheat. If Bangladesh is open to international trade in wheat without any restrictions, it will import Suppose the Bangladeshi government wants to reduce imports to exactly 160 bushels of wheat to help domestic producers. A tariff of per bushel will achieve this. in revenue for the Bangladeshi government A tariff set at this level would raise S