The United States imposes restrictions that make Canadian prescription drugs relatively less expensive (after adjusting for exchange

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The United States imposes restrictions that make Canadian prescription drugs relatively less expensive (after adjusting for exchange rates) than U.S. prescription drugs. U.S. residents have increasingly begun to travel across the border to buy these drugs. Using supply and demand graphs, show the impact of these activities on the equilibrium quantity and price of:

a) prescription drugs in U.S. drugstores located near the Canadian–U.S. border.

b) prescription drugs in Canadian drugstores located near the Canadian–U.S.

border.

c) Canadian drugstores near the U.S. border.

d) bus tickets from major northern U.S. cities to Canadian cities.

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