Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Graph Input Tool 515 Market for Maize in Sudan 485 Supply Price 395 455 (Dollars per ton) Domestic Demand 200 Domestic Supply 300 425 (Thousands

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
Graph Input Tool 515 Market for Maize in Sudan 485 Supply Price 395 455 (Dollars per ton) Domestic Demand 200 Domestic Supply 300 425 (Thousands of tons Thousands of tons of maize) of maize) 395 365 PRICE (Dollars per ton) 335 305 Demand 275 PW 245 215 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons of maize) If Sudan is open to international trade of maize without any restrictions, it will import tons of maize. (Note: Be sure to enter the full value for your answer, accounting for the horizontal axis units.) Suppose the Sudanese government wants to reduce imports to exactly 100,000 tons of maize to help domestic producers. A tariff of | $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the Sudanese government. Grade It Now Save & Continue Continue without saving5. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for maize in Sudan. Sudan is open to international trade of maize without any restrictions. The world price (Pw) of maize is $245 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 maize and that there are no transportation or transaction costs associated with international trade in maize. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

7th edition

134738314, 9780134738116 , 978-0134738321

Students also viewed these Economics questions