Section (2] Question 1 (15 marks total] Suppose that in the past, Canada and the United States were involved in a IIade agreement whereby US softwood lumber consumers were able to purchase Canadian produced lumber. The initial demand and supply equations that characterized the domestic Canadian softwood lumber market were as follows: 921502omt' P=SD+ZQEM But suppose a trade dispute arises between the two countries and the US government places a trade embargo on Canadian softwood lumber, such that US consumers can no longer purchase Canadian lumber? US demand is given by the following equation: P2120 3 03' With the aid of a fullj,I labelled diagram, illustrate the economic effects of the trade embargo and answer the questions that follow. P (Diagram: 2 marks] (Question 1, continued] 1} What is the original equilibrium price and quantity [2 marks} 2)What is the newr equilibrium price and quantity (5 marks) 3} What was original consumption by Americans? (2 marks} 4} What was original consumption by Canadians? {2 marks) 5} Has consumption by Canadians risen or fallen and why? {1 mark) 6} Has production by Canadian suppliers risen or fallen and why? [lmark)