5. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in New Zealand. New Zealand is open to international trade of oranges Ss Tips without any restrictions. The world price (Pw) of oranges is $770 per ton and is represented by the horizontal black line. Throughout this problem, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction ss Tips costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or Importing takes place. R YOU Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Test Graph Input Tool (?) 1220 Market for Oranges in New Zealand Supply Price 1.020 back (Dollars per ton) Domestic Demand Domestic Supply 60 Thousands of tons (Thousands of tons of oranges) of oranges) PRICE (Dollars per ton) 10 20 30 40 50 80 70 80 DO QUANTITY (Thousands of tons of oranges) If New Zealand is open to international trade of oranges without any restrictions, it will import 20,000 tons of oranges. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the New Zealand government wants to reduce imports to exactly 20,000 tons of oranges to help domestic producers. A tariff of |$ per ton will achieve this. A tariff set at this level would raise in revenue for the New Zealand government. Grade It Now Save & Continue