Britain and France have now entered into a customs union. Therefore, only the products imported from outside the union will be subject to the tariff. Which country will the British buy wheat from now? Which country will the British buy wine from?

USA FRANCE BRITAIN WORLD PRICE Wheat per bushel 4 6 8 Wine per bottle 6 5 7 PRICE IN BRITAIN AFTER A TARIFF OF E3 Wheat per bushel 7 9 8 Wine per bottle 9 8 7 PRICE IN BRITAIN AFTER CUSTOMS UNION WITH FRANCE Wheat per bushel 7 6 8 Wine per bottle 9 5 7