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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 soybeans in Zambia. The world price (Pw) of soybeans is $535 per ton and is I black line. Throughout the question, assume that the amount demanded by any 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 domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place 850 Domestic Demand Domestic Supply 780 745 710 675 w 640 0 30 60 120 150 180 210 240 270 300 QUANTITY (Tons of soybeans) 0 Type here to search eR
If Zambia is open to international trade in soybeans without any restrictions, it will import tons of soybeans. Suppose the Zambia n government wants to reduce imports to exactly 60 tons of soybeans to help domestic producers. A tariff of S per ton will achieve this. tariff set at this level would raise s in revenue for the Zambian government
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