c. If Canada is an open market and the world price of
hockey sticks is $60, describe the Canadian market. What
is domestic production and consumption? Is Canada
exporting or importing this product? How many per year?
d. Suppose the world price is $60 and the Canadian
government imposes a tariff of 50 percent on all imported
hockey sticks. Describe the change in the Canadian
market. What is the new price to Canadian consumers?
What is domestic production and consumption? What is
the new level of imports?
e. Describe which groups benefit and which groups lose due
to the trade restriction described in part (d).
f. How much tariff revenue would the Canadian
government collect with the 50 percent tariff in place?
12. The table below shows the prices in Canada of cotton towels
produced in the United States, Canada, and Bangladesh. Assume
that all cotton towels are identical.
