Question

international trade 4. Effects of a tarief The following up shows the dom y of and demand for s eans in Venezuela. The world price (R) of soybeans is $520 per ton and represented by the horror black in. Throughout the question, me that the amount demanded by 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 domestic demand as much as possible before any exporting or importing takes place Domestic Supply PRCE IDolors petoro QUANTITY (Tons of soybeans)

Answer 1

If Venezuela is open to international trade.............. 300 tons of soybeans.

Suppose the Venezuela government................ $ 60 per ton will achieve this

A tariff set at............... $ 6000 in revenue for the Venezuelan government

Note : imports = 400 -100 = 300

Tariff = 580 - 520 = 60

Revenue = 60*100 = 6000