Demand: P=420-60QdSupply: P=2+20QSa.With free trade and an internationalprice of $60 per barrel, how much oil doesthe Canada produce domestically? Howmuch does it consume? Show thedemand and supply curve on a graph andlabel these points.b.If the Canada stopped all imports ofoil, how much oil would be produced in theCanada? How much would beconsumed? What would be the price pf oilin the Canada with no oil imports? Showall of this on your graph.

Demand : P = 420 - 60Q 60Q = (420-P) Q = (420-P)/60 Supply : P = 2 + 20Q 20Q = (P-2) Q = (P-2)/20…

Demand: P=420-60Qd Supply: P=2+20QS a. With free trade and an international price of $60 per barrel, how much oil does the Canada produce domestically? How much does it consume? Show the demand and supply curve on a graph and label these points. If the Canada stopped all imports of oil, how much oil would be produced in the b. Canada? How much would be consumed? What would be the price pf oil in the Canada with no oil imports? Show all of this on your graph.

Demand: P=420-60Qd Supply: P=2+20QS a. With free trade and an international price of $60 per barrel, how much oil does the Canada produce domestically? How much does it consume? Show the demand and supply curve on a graph and label these points. If the Canada stopped all imports of oil, how much oil would be produced in the b. Canada? How much would be consumed? What would be the price pf oil in the Canada with no oil imports? Show all of this on your graph.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 2PA

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