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?????https:/ To see favorites here, select then , and drag to the Favorites Bar folder. Or import from another browser. Import favorites ??MINDTAP Homework (Ch 09) Q Search this c 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Jordan. The world price (Pw of oranges is $780 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one price of oranges and that there are no transportation or transaction costs assodated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place Domestic Supply O Type here to search

Explanation / Answer

It will import 240 tons of oranges

Imports = quantity demanded - quantity supplied = 210 - 30 = 240

A tariff of $90 per ton wil achieve this.

Imports = 210 - 90 = 120

Raises $ 10,800 on revenue for the Jordanian government

Tax revenue = tariff * quantity imported = 90 *120 = 10,800

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