4 Effects of a tariff on international trade The following g

4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for wheat in Bangladesh. The world price (Pw) of wheat is $250 per bushel 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 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 Market for Wheat in Bangladesh l Price 475 450 425 400 375 350 325 300 275 250 400 (Dollars per bushel) Domestic Demand esticDeand90 ply of wheat) 210 Thousands of of wheat) 30 60 90 120 150 180 210 240 270 300

Solution

Answer to 1st blank: $150

Answer to 1st blank:$900,000