The accompanying table shows the Canadian domestic demand schedule and domestic supply schedule for apples. Suppose that the world price of apples is $0.30 per apple.

a. Draw the Canadian domestic supply curve and domestic demand curve.

b. With free trade, how many apples will Canada import or export? Suppose that the Canadian government imposes a tariff on apples of $0.20 per apple.

c. How many apples will Canada import or export after introduction of the tariff?

d. In your diagram, shade the gain or loss to the economy as a whole from the introduction of this tariff.

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Quantity of apples demanded (thousands) Quantity of apples supplied (thousands) Price of apple $1.00 2 11 0.90 4 10 0.80 0.70 8. 8. 0.60 10 0.50 12 0.40 14 0.30 16 4 0.20 18 CO