e) For this and the following parts consider your first and second non-zero digist of your student ID above. If A is even let the country importing potatoes imposes an import tariff of $B per unit. If A is odd let the country exporting potatoes impose an export subsidy of $3 per unit. Calculate the effect on the world price and the domestic price. Calculate the quantity traded. Show your work. For the student ID I choose as an example A is six which is even so that a tariff is indicated. As B is 7 that is the per unit tariff on imported potatoes from Peru. The import demand curve can be amended by substituting PD - t for P where PD is the Canadian domestic price, t is the tariff and P is the world price. So PD = P + t Substituting P + t for PD in Canada's import demand curve and setting t = 7 we have QEX = 3P - 83 = 67 - (P + 7) = qur which yields P = 35 3/4 and Q = 24 1/4 New world price after per unit subsidy or tariff imposed 35 3/4 Quantity of potatoes traded 24 1/4