May I please have help with this? I will make sure to like! Thank you
Posted: Sun Jul 03, 2022 6:56 am
May I please have help with this? I will make sure to like!Thank you
Suppose Bangladesh is open to free trade in the world market for maize. Because of Bangladesh's small size, the demand for and supply of maize in Bangladesh do not affect the world price. The following graph shows the domestic maize market in Bangladesh. The world price of maize is Pw = $350 per ton. Throughout this problem, assume that changes in trade policies in other nations do not significantly affect the world market for maize and that there are no transportation or transaction costs associated with international trade in maize. Also assume that domestic supplies will satisfy domestic demand as much as possible before any exporting or importing takes place. 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 domestic producer surplus (PS).
PRICE (Dollars per ton) 710 Domestic Demand 670 630 590 550 510 470 430 390 350 310 0 3 Domestic Supply 6 9 12 15 18 21 24 QUANTITY (Thousands of tons of maize) 27 PW 30 Show the effects of the $40 tariff on the following graph. CS PS If Bangladesh allows international trade in the market for maize, it will import your answer, accounting for the horizontal axis units.) tons of maize. (Note: Be sure to enter the full value for Now suppose the Bangladeshi government decides to impose a tariff of $40 on each imported ton of maize. After the tariff, the domestic price of a ton of maize will be $ , and Bangladesh will import tons of maize.
Use the grey line (star symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the domestic producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 710 670 630 590 550 510 470 430 390 350 310 0 Domestic Demand 3 Domestic Supply 6 9 12 15 18 21 24 QUANTITY (Thousands of tons of maize) 27 PW 30 World Price Plus Tariff PS Government Revenue DWL (?)
Complete the following table to summarize your results from the previous two graphs. Under Free Trade (Dollars) Under a Tariff (Dollars) Consumer surplus Producer surplus Government revenue 0 of $ Based on your analysis, as a result of the tariff, Bangladesh's consumer surplus by $ by , and producer surplus . Taking into account how much revenue the tariff generates for the government, the net welfare effect is a
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PRICE (Dollars per ton) 710 Domestic Demand 670 630 590 550 510 470 430 390 350 310 0 3 Domestic Supply 6 9 12 15 18 21 24 QUANTITY (Thousands of tons of maize) 27 PW 30 Show the effects of the $40 tariff on the following graph. CS PS If Bangladesh allows international trade in the market for maize, it will import your answer, accounting for the horizontal axis units.) tons of maize. (Note: Be sure to enter the full value for Now suppose the Bangladeshi government decides to impose a tariff of $40 on each imported ton of maize. After the tariff, the domestic price of a ton of maize will be $ , and Bangladesh will import tons of maize.
Use the grey line (star symbol) to indicate the world price plus the tariff. Then, use the green triangle (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the domestic producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 710 670 630 590 550 510 470 430 390 350 310 0 Domestic Demand 3 Domestic Supply 6 9 12 15 18 21 24 QUANTITY (Thousands of tons of maize) 27 PW 30 World Price Plus Tariff PS Government Revenue DWL (?)
Complete the following table to summarize your results from the previous two graphs. Under Free Trade (Dollars) Under a Tariff (Dollars) Consumer surplus Producer surplus Government revenue 0 of $ Based on your analysis, as a result of the tariff, Bangladesh's consumer surplus by $ by , and producer surplus . Taking into account how much revenue the tariff generates for the government, the net welfare effect is a