A blockade at the border between the United States and Canada prevents the entry of all lumber products to the United States from Canada.This blockade will:

Question

Quizplus · Accepted Answer

The blockade will limit the supply of lumber to the United States, which will increase the price of lumber in the United States. This will benefit American lumber producers who will see an increase in producer surplus. However, Canadian lumber producers will see a decrease in producer surplus as they will be unable to sell their lumber in the United States market. Overall, there will be a loss of total surplus in the Canadian lumber market.

A Blockade at the Border Between the United States and Canada