The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is PW.Assume that all jeans are identical.
FIGURE 34- 2
-Suppose the Canadian government imposes trade restrictions (tariffs or quotas)on the import of steel.Which of the following groups are likely to be in favour of this policy?

Question

The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is PW.Assume that all jeans are identical.
  FIGURE 34- 2
-Suppose the Canadian government imposes trade restrictions (tariffs or quotas)on the import of steel.Which of the following groups are likely to be in favour of this policy?

Quizplus · Accepted Answer

Imposing trade restrictions on imported steel would result in an increase in the price of steel in Canada, which would benefit Canadian steelworkers' union and Canadian automotive union. This would make domestically produced steel more competitive and protect jobs in the steel industry. However, this policy would not be favorable for foreign steel consumers or Canadian consumers, who would have to pay higher prices for steel products. Foreign steel producers would also be negatively affected by this policy as they would lose out on their Canadian market.

The Diagram Below Shows the Domestic Demand and Supply Curves