Question: Please answer the question in the image attached Both Kelowna BC and Mexico produce apples. Apple is priced at $2/lbs in Kelowna BC and is

Please answer the question in the image attached

Both Kelowna BC and Mexico produce apples. Apple is priced at $2/lbs in Kelowna BC and is priced at $0.50/lbs in a Mexican city. Traders use airfreight to facilitate the apple trade between the two regions. Due to the pandemic restrictions on airlines, the airfreight price increased to $3.29/kg between the two regions. Use the economic model you learned from this course to explain what will happen to the apple trade between the regions. Please draw graphs with proper labels to explain your prediction. (10 points)

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