The diagram below shows the hypothetical) demand and supply curves for regional jets in Canada. Assume that the market is competitive, all jets are identical, and that Canada engages in international trade.
FIGURE 32-6
-Refer to Figure 32-6. Assume the world price of a regional jet is $20 million. Further, suppose that Canada disallowed international trade in regional jets. With no trade in regional jets, Canadian consumers will spend
At the domestic equilibrium price and quantity versus for the same quantity at the world price.

Question

The diagram below shows the hypothetical) demand and supply curves for regional jets in Canada. Assume that the market is competitive, all jets are identical, and that Canada engages in international trade.
  FIGURE 32-6
-Refer to Figure 32-6. Assume the world price of a regional jet is $20 million. Further, suppose that Canada disallowed international trade in regional jets. With no trade in regional jets, Canadian consumers will spend
At the domestic equilibrium price and quantity versus for the same quantity at the world price.

Quizplus · Accepted Answer

Without trade, Canadian consumers pay the domestic equilibrium price, spending $2100 million. At the world price, they would spend $1400 million for the same quantity.

The Diagram Below Shows the Hypothetical) Demand and Supply Curves