Domestic Supply and Demand for Wheat in New Zealand Assignment | Homework For You
The following graph shows the domestic supply of and demand for wheat in New Zealand. 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.
430 Domestic Demand Domestic Supply 410 + PRICE (Dollars per bushel) Fund 10 20 80 0 90 100 30 40 50 60 70 QUANTITY Bushels of wheat) PRIC 0 10 20 80 90 100 30 40 50 60 70 QUANTITY (Bushels of wheat) bushels of wheat.
If New Zealand is open to international trade in wheat without any restrictions, it will import Fund p er mm Suppose the New Zealand government wants to reduce imports to exactly 20 bushels of wheat to help domestic producers. A tariff of S bushel will achieve this. in revenue for the New Zealand government. A tariff set at this level would raise $ Grade It Now Save & Continue Continue without saving. Get Economics homework help today