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Question: the following graph shows the domestic supply of and demand...

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The following graph shows the domestic supply of and demand for wheat in Bolivia. The world price (Pw) of wheat is $265 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 assodiated 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. 535 Domestic Demand Domestic Supply 505 ed 2 355 20 235 00 100 150 200 250 300 350 400 450 800 QUANTITY (Bushels of wheat) f Bolivia is open to international trade in wheat without any restrictions, it will mport bushels of wheat. Suppose the Bolivian government wants to reduce imports to exactly 100 bushels of wheat to help domestic producers. A taniff ofper bushel will achieve this A tanff set at this level would raise in revenue for the Bolivian government.
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