Question: please help me to solve this one. thanks Question: Suppose US government allows importers to imports 10,000 cars from Canada. The government is under pressure

please help me to solve this one. thanks

Question: Suppose US government allows importers to imports 10,000 cars from Canada. The government is under pressure from the auto industry to restrict imports of cars to 6000 and raise the free trade price of $200 of a standard car to $250 either by imposing a tariff of $80 or by imposing a quota of 6000 cars.

A. Calculate the net US national gains or losses from the tariff and quota.

B. Calculate the net national gains or losses for Canada, the exporter country, from the tariff and quota.

C. Which of the three options - free trade, tariff, or quota are best for the US, Canada and the world as a whole. why?

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