7 The domestic supply-and-demand diagram below represents a product in which Canada does not have a comparative advantage. 3. What impact do foreign imports have on domestic price and quantitw Imports (Click to IIIEI V the domestic price, {Click to sale V consumption and : omestic production. b. The diagram below shows a protective tariff that eliminates part of the imports that exist at the world price, Pworld- SkIppad 6) Price 0 Quantity c. What are the price-quantity effects of this tariff on the following? [Assume the country imposing the tariff is a small part of the world market.) Domestic consumers: Price will (Clickto sale V and quantity will (Clickto sole V . Domestic producers: Price will (Click in sale V and quantity will (Click to solo V . Foreign exporters: Price will (Click to sale- V and quantity will (Click to sale V . In Country A, a worker can make 5 bicycles per hour. In Country B, a worker can make 7 bicycles per hour. Which country has an absolute advantage in making bicycles? 0 Country A 0 Country B Consider the following statement: \"Canada can make certain toys with greater productive efciency than can China. Yet we import those toys from China.\" a. We import these toys from China because Canada has an absolute advantage in producing toys. but China has a comparative advantage in producing toys. 0 China has an absolute advantage in producing toys, but Canada has a comparative advantage in producing toys. 0 Canada has a higher cost per unit of producing the toys. 0 China produces better toys. in. Which ideas of Adam Smith and David Ricardo are represented by the above statement? China does not need Smith's absolute advantage to benefit from specialization and trade. it only needs Ricardo's comparative advantage. 0 China does not need Smith's comparative advantage to benefit from specialization and trade. it only needs Ricardo's absolute advantage. 0 China needs Smith's producer advantage to specialize in toys rather than Ricardo's consumer advantage