The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is PW.Assume that all cotton towels are identical.
FIGURE 34- 3
-Consider the North American Free Trade Agreement (NAFTA)between Canada,the United States and Mexico.Some industries in Canada,however,continue to have some trade protection.An example is

Question

The diagram below shows the domestic demand and supply curves for cotton towels in Canada.The prevailing world price of cotton towels is PW.Assume that all cotton towels are identical.
  FIGURE 34- 3
-Consider the North American Free Trade Agreement (NAFTA)between Canada,the United States and Mexico.Some industries in Canada,however,continue to have some trade protection.An example is

Quizplus · Accepted Answer

The diagram shows the domestic demand and supply curves for cotton towels in Canada. However, the question is asking about trade protection in Canadian industries. The best choice is E, dairy products, as this industry in Canada has historically been protected by trade barriers and subsidies.

The Diagram Below Shows the Domestic Demand and Supply Curves