ou are provided with the following information about the Canadian turkey market: 1. The world price of turkey is $5. 2. The Canadian turkey market is currently (before the new trade agreement) protected by a tariff rate quota (TRQ) of the following format: a) the in-quota tariff is $1 per unit b) the import quota volume is 100 units c) the over-quota tariff is $10 per unit. 3. An excess demand (ED) (for imports) function for turkey has been estimated as ? = 28 − 0.14?. Notes: Canada is a small importing country in the world market for turkeys. Answer the question below: The Canadian government is considering reducing the in-quota tariff to $0.50. Modify the diagram for this market, and solve for the Canadian turkey price and the volume of imports. Label all relevant functions, axes, etc.
You are provided with the following information about the Canadian turkey market:
1. The world price of turkey is $5.
2. The Canadian turkey market is currently (before the new trade agreement) protected by a tariff
rate quota (TRQ) of the following format:
a) the in-quota tariff is $1 per unit
b) the import quota volume is 100 units
c) the over-quota tariff is $10 per unit.
3. An excess demand (ED) (for imports) function for turkey has been estimated as
? = 28 − 0.14?.
Notes: Canada is a small importing country in the world market for turkeys.
Answer the question below:
The Canadian government is considering reducing the in-quota tariff to $0.50. Modify the diagram for this market, and solve for the Canadian turkey price and the volume of imports. Label all relevant functions, axes, etc.
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