Answer: $3,600
Explanation:
For gautamala government to reduce imports to 60 tons of maize, the government must set a tariff that which would raise the price of maize to the point where the domestic quantity demanded exceeds Guatamala domestic quantity supplied by exactly 60 tons of maize.
A $60-per-ton tariff on maize would raise the domestic price of maize to ($330 per ton). This would be $60 per ton higher than the world price per ton which stands at $270.
When the price is $330 per ton, the domestic quantity demanded would increase to 240 tons, and the domestic quantity supplied would be 160 tons of maize.
A tariff set at this level would raise revenue for the Guatamala government.
$60-per-ton tariff on maize would cause Guatamala to import 60 tons of maize.
This sums up to $60per ton × 60ton
= $3600
The tariff would raise $3600 revenue for the Guatamala government.
