8. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of lemons in Guatemala. The world price (PW) of lemons is $245 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 lemons and that there are no transportation or transaction costs associated with international trade in lemons. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) AIS Domestic Demand Domestic Supply 425 305 365 306 306 275 245 216 185 30 NO 00 340 270 300 QUANTITY (Tans of lemons) If Guatemala is open to international trade in lemons without any restrictions, it will import tons of lemons. Suppose the Guatemalan government wants to reduce imports to exactly 60 tons of lemons to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Guatemalan government.