Problems
11. The diagram below shows the supply and demand curves for the
Canadian domestic market for hockey sticks. Assume all hockey
sticks are identical.a. If Canada is a closed market and there is no international
trade in hockey sticks, what is the price and quantity
exchanged?
b. If Canada is an open market and the world price of
hockey sticks is $120, describe the Canadian market.
What is domestic production and consumption? Is
Canada exporting or importing this product? How many
per year?