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The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw) of soybeans is $520 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world p of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Domestic Supply 880 Domestic Demand 840 800 760 720 680 640 600 560 520 480 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Tons of soybeans) If Guatemala is open to international trade in soybeans without any restrictions, it will import| tons of soybeans. Suppose the Guatemalan government wants to reduce imports to exactly 40 tons of soybeans to help domestic producers. A tariff of $ per tor will achieve this. A tariff set at this level would raise $ in revenue for the Guatemalan government. PRICE (Dollars per ton)

The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw) of soybeans is $520 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world p of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Domestic Supply 880 Domestic Demand 840 800 760 720 680 640 600 560 520 480 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Tons of soybeans) If Guatemala is open to international trade in soybeans without any restrictions, it will import| tons of soybeans. Suppose the Guatemalan government wants to reduce imports to exactly 40 tons of soybeans to help domestic producers. A tariff of $ per tor will achieve this. A tariff set at this level would raise $ in revenue for the Guatemalan government. PRICE (Dollars per ton)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw ) of soybeans is $520 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 880 Domestic Demand Domestic Supply 840 800 760 720 680 640 600 560 P 520 480 10 20 30 40 50 60 70 80 06 100 QUANTITY (Tons of soybeans) If Guatemala is open to international trade in soybeans without any restrictions, it will import| tons of soybeans. Suppose the Guatemalan government wants to reduce imports to exactly 40 tons of soybeans 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. PRICE (Dollars per ton)
Transcribed Image Text:The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw ) of soybeans is $520 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 880 Domestic Demand Domestic Supply 840 800 760 720 680 640 600 560 P 520 480 10 20 30 40 50 60 70 80 06 100 QUANTITY (Tons of soybeans) If Guatemala is open to international trade in soybeans without any restrictions, it will import| tons of soybeans. Suppose the Guatemalan government wants to reduce imports to exactly 40 tons of soybeans 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. PRICE (Dollars per ton)
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