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4) Suppose Canada and Pottsylvania both produce steel, but the two countries enter into a trade agreement whereby Pottsylvanian consumers are able to purchase

 

4) Suppose Canada and Pottsylvania both produce steel, but the two countries enter into a trade agreement whereby Pottsylvanian consumers are able to purchase Canadian produced steel. What is the effect on the equilibrium price in the Canadian steel market? What is the effect on equilibrium price in the Pottsylvanian steel market? P P Po SCANADA DCANADA Po Qo SPOTTSYLVANIA DPOTTSYLVANI A

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