A Japanese steel firm sells steel in Canada and in Japan.Since the Canada buys steel from a number of sources,the Canadian demand for Japanese steel is more price-elastic than is the Japanese demand for Japanese steel.If the Japanese steel firm wishes to maximize its profits,it should:

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Since the Canadian demand for Japanese steel is more price-elastic than the Japanese demand for Japanese steel, the Japanese steel firm should charge a lower price in Canada and a higher price in Japan to maximize its profits. This is because a higher price in Canada would result in a significant decline in demand, and a lower price in Japan would not lead to an equivalent increase in demand. Therefore, charging a lower price in Canada and a higher price in Japan would enable the firm to maximize its profits.

A Japanese Steel Firm Sells Steel in Canada and in Japan.Since