Assume that Canada imports and exports oil. Assume also that the market for oil is competitive and Canada cannot affect the world price. Assume that if there is no international trade, the Canadian equilibrium price exceeds the world price

a)Draw a diagram showing the Canadian market for oil; imports at the world price

b)Assume a tariff was imposed on imported oil what will happen to the price of oil in Canada? explain

c)Discuss, in general, who benefits and who is harmed by such a tariff? Reflect that in the diagram.