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Suppose that the domestic supply and demand for snowboards in Canada are given by the following equations: QS =-110+3PandQD =390–2P. a. What is the equilibrium price and quantity in Canada? b. Accurately graph the demand and supply along with the equilibrium. c. What is the consumer surplus and producer surplus at equilibrium? d. If Canada can trade snowboards freely with the rest of the world at the price of $80, how many snowboards will be produced and purchased in Canada? e. Accurately graph the world price along with the quantities produced and purchased on the diagram you constructed above. f. If Canada engages in free trade with the trade at the price of $80, what is the consumer surplus and producer surplus for the market of snowboards? g. Suppose the Canadian government imposes at $10 tariff on snowboards, how many units will be produced and purchased in Canada?
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