Answer whether the statement is True, False or Uncertain, and give your reasoning for this answer (several sentences)

1. If for some commodity the FOB price =1.00 and the CIF price = 1.20, then if it is freely traded with no policy intervention, one would never observe a domestic price rise of more than 0.20 due to changes in domestic production or consumption.

2. If cooking oil imports (including soybean oil, used in making margarine which is a butter substitute) into Canada are reduced using lower import quotas, this policy will help dairy farmers by increasing butter sales and raising the aggregate (Canada) level of milk quotas.

3.With a concentration ratio (CR3) of 75% for the milk processing sector in Canada, this less-than-competitive market situation will result in both lower milk prices for farmers and higher prices for milk product consumers, compared to a competitive processor marketplace.