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Attempts 0.5 3. Tariffs Suppose Bangladesh is open to free trade in the world market for oranges. Because of Bangladesh's small size, the demand for and supply of oranges in Bangladesh do not affect the world price. The following graph shows the domestic oranges market in Bangladesh. The world price of oranges is Pw =$800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). ? PRICE (Dollars per ton) 1280 Domestic Demand 1220 1160 1100 1040 980 920 860 800 740 Keep the Highest 0.5/2 680 0 Domestic Supply 14 16 2 4 6 8 10 12 QUANTITY (Thousands of tons of oranges) 18 20 CS PS f Bangladesh allows international trade in the market for oranges, it will import Show the effects of the $60 tariff on the following graph. tons of oranges. Now suppose the Bangladeshi government decides to impose a tariff of $60 on each imported ton of oranges. After the tariff, the price Bangladeshi consumers pay for a ton of oranges is S and Bangladesh will import tons of oranges. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer w

Attempts 0.5 3. Tariffs Suppose Bangladesh is open to free trade in the world market for oranges. Because of Bangladesh's small size, the demand for and supply of oranges in Bangladesh do not affect the world price. The following graph shows the domestic oranges market in Bangladesh. The world price of oranges is Pw =$800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). ? PRICE (Dollars per ton) 1280 Domestic Demand 1220 1160 1100 1040 980 920 860 800 740 Keep the Highest 0.5/2 680 0 Domestic Supply 14 16 2 4 6 8 10 12 QUANTITY (Thousands of tons of oranges) 18 20 CS PS f Bangladesh allows international trade in the market for oranges, it will import Show the effects of the $60 tariff on the following graph. tons of oranges. Now suppose the Bangladeshi government decides to impose a tariff of $60 on each imported ton of oranges. After the tariff, the price Bangladeshi consumers pay for a ton of oranges is S and Bangladesh will import tons of oranges. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer w

Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
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Attempts 0.5 3. Tariffs Suppose Bangladesh is open to free trade in the world market for oranges. Because of Bangladesh's small size, the demand for and supply of oranges in Bangladesh do not affect the world price. The following graph shows the domestic oranges market in Bangladesh. The world price of oranges is Pw = $800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). PRICE (Dollars per ton) 1280 1220 1160 1100 1040 980 920 860 800 740 680 0 Keep the Highest 0.5 / 2 Domestic Demand 2 wala Domestic Supply 4 6 8 10 12 14 16 QUANTITY (Thousands of tons of oranges) 18 20 Show the effects of the $60 tariff on the following graph. CS If Bangladesh allows international trade in the market for oranges, it will import PS Now suppose the Bangladeshi government decides to impose a tariff of $60 on each imported ton of oranges. After the tariff, the price Bangladeshi consumers pay for a ton of oranges is $ , and Bangladesh will import tons of oranges. tons of oranges. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer ith the tiff doilet.
Transcribed Image Text:Attempts 0.5 3. Tariffs Suppose Bangladesh is open to free trade in the world market for oranges. Because of Bangladesh's small size, the demand for and supply of oranges in Bangladesh do not affect the world price. The following graph shows the domestic oranges market in Bangladesh. The world price of oranges is Pw = $800 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). PRICE (Dollars per ton) 1280 1220 1160 1100 1040 980 920 860 800 740 680 0 Keep the Highest 0.5 / 2 Domestic Demand 2 wala Domestic Supply 4 6 8 10 12 14 16 QUANTITY (Thousands of tons of oranges) 18 20 Show the effects of the $60 tariff on the following graph. CS If Bangladesh allows international trade in the market for oranges, it will import PS Now suppose the Bangladeshi government decides to impose a tariff of $60 on each imported ton of oranges. After the tariff, the price Bangladeshi consumers pay for a ton of oranges is $ , and Bangladesh will import tons of oranges. tons of oranges. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer ith the tiff doilet.
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