An Unsavoury Business: The Story of Canada’s Syrup Cartel More than 75 percent of the world’s maple syrup comes from Canada’s Federation of Quebec Maple Syrup Producers. All of Quebec’s maple syrup producers must sell their syrup to the Federation. The Federation holds back supply during surplus years and inflates the price.

a. If the Federation of Quebec Maple Syrup Producers acts as a profit‑maximizing colluding oligopoly, explain how it would influence the price of maple syrup.

b. Draw a graph to illustrate your answer to (a).

c. Why is it difficult for the Quebec cartel to act like a monopoly? Use the ideas of game theory to explain.