Show the effects of the $40 tariff on the following graph. Use the black line (plus symbol) to indicate the world price plus the tarifr. Then, use the green points (triangle symbols) to show the...

Extracted text: Show the effects of the $40 tariff on the following graph. Use the black line (plus symbol) to indicate the world price plus the tarifr. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangie (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadriiateral (square symbols) to shade the area representing government revenue recelved from the tariff and the tan points (rectangie symbols) to shade the areas representing deadwelght loss (DWL) caused by the tanff. Domestic Supply 710 Domestic Dermand 670 World Price Plus Tariff 630 590 550 Cs 510 470 PS 430 390 Government Revenue 350 310 15 30 45 60 75 90 105 120 135 150 DWL QUANTITY (Tons of maize) Complete the following table to summarize your resuits from the previous two graphs. Under Free Trade Under a Tarifr (Dollars) (Dollars) Consumer Surplus Producer Surplus Government Revenue Based on your analysis, as a result of the tariff, Bangladesh's consumer surplus by s producer surplus by $ , and the government collects S in revenue. Therefore, the net welfare effect is a of PRICE (Dollars per ton)


Extracted text: 3. Welfare effects of a tariff in a small country Suppose Bangladesh is open to free trade in the world market for maize. Because of Bangladesh's small size, the demand for and supply of maize in Bangladesh do not affect the world price. The following graph shows the domestic maize market in Bangladesh. The world price of maize is Pw = $350 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). 710 Domestic Demand Domestic Supply 670 Cs 630 590 550 PS 510 470 430 390 350 310 15 30 45 60 75 90 105 120 135 150 QUANTITY (Tons of maize) If Bangladesh allows international trade in the market for maize, it will import |tons of maize. Now suppose the Bangladeshi government decides to impose a tariff of $40 on each imported ton of maize. After the tariff, the price Bangladeshi consumers pay for a ton of maize is $ |, and Bangladesh will import tons of maize. PRICE (Dollars per ton)