12. Gainsfrom Trade. The market for tuna is shown below. The foreign supply curve Sf is drawn as perfectly elastic at the world price of $1.00 per can. The Canadian domestic demand and supply curves are denoted as Dc and Sc respectively. a) {5 marks}. If a tariff of $0.50 per can is imposed on imported cans of tuna then use the diagram below to determine a numerical answer for the {i} domestic price of tuna {ii} domestic consumption of tuna [iii] domestic production of tuna {iv} quantity of imported tuna {v} tariff revenue. (tho usan ds of cans) b) {10 marks). Now suppose the world price of tuna to falls from $1.00 to $0.50 per can. If the tariff stays at $0.50 per can then determine which Canadians win and which Canadians lose from lower import prices by calculating the change in Canadian consumer surplus, change in Canadian producer surplus and change in Canadian tariff revenue caused by the reduction in the world price of tuna from $1.00 to $0.50. c) (5 marks). Using your answer to b] explain whether or not lower import prices are in the collective interest of Canadians. S;f(:2111 ___J_ ________ '____I_____I____ _ I 7 l . I | I I -..+. I I I | 1""""r"' | I I I | I I --1-_-_ | I | I | I ..J--_- 4 | I | I | I | I -..........1--. | I | I | I --L.-. I I I I N C C I | I I I I I I | I | L I I I | 1 I I I I I I I I I I I I _' I I I 4____ I I I I _' I I I u U C) I I I I 4 | I | | I | L..- | | | | ""F"' | | I (Thousands of cans\")