If New Zealand is open to international trade of wheat without any restrictions, it will import _____ bushels of wheat. (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 60,000 bushels of wheat to help domestic producers. A tariff of ______ per bushel will achieve this. A tariff set at this level would raise ____________ in revenue for the New Zealand government.

5. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for wheat in New Zealand. New Zealand is open to international trade of wheat with any restrictions. The world price (Pw) of wheat is $265 per bushel and is represented by the horizontal black line. Throughout this problem, assum 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. 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. Graph Input Tool (?) 535 Market for Wheat in New Zealand 506 Supply Price (Dollars per bushel) 475 Domestic Demand Thousands of 60 Domestic Supply bushels of wheat Thousands ofki 240 bushels of wheat PRICE ( Dollars per bushel) Demand 285 235 0 30 60 90 120 150 210 240 270 300 QUANTITY (Thousands of bushels of whe s:)