Original Supply Curve w/ $300 Supply Curve After Demand Curve Supply Curve Cost Reduction Mexican Earthquake Quantity Location WTP Location Cost Location Cost Location Cost U.S. $2,420 Canada $705 Canada $405 Canada $405 UI AWN Mexico $2,260 Canada $735 Canada $435 Canada $435 Mexico $2,100 Mexico $765 Mexico $465 Canada $565 Canada $1,940 Mexico $795 Mexico $495 Canada $590 U.S. $1,780 Mexico $805 Mexico $505 Canada $800 6 Mexico $1,680 Mexico $835 Mexico $535 U.S $880 Canada $1,580 Canada $865 Canada $565 Canada $905 8 U.S. $1,480 Canada $890 Canada $590 U.S $930 9 Mexico $1,380 Mexico $935 Mexico $635 Canada $985 10 Canada $1,280 Mexico $980 Mexico $680 Canada $1,040 11 Mexico $1,240 Mexico $1,025 Mexico $725 U.S. $1,095 C 12 Canada $1,160 Mexico $1,065 Mexico $765 U.S. $1,160 A 13 Mexico $1,080 Mexico $1,080 Mexico $780 U.S. $1,240 14 U.S. $1,000 U.S. $1,100 U.S. $800 U.S. $1,320 15 Canada $960 Mexico $1,120 Mexico $820 U.S. $1,400 16 U.S. $920 Mexico $1,145 Mexico $845 B 17 U.S $880 U.S. $1,180 U.S. $880 18 Mexico $840 Canada $1,205 Canada $905 Original Market Equilibrium 19 Mexico $800 U.S. $1,230 U.S. $930 Market Eq. w/ $300 Cost Reduction 20 U.S. $720 Canada $1,285 Canada $985 Market Eq. w/ No Mexican Production 21 Canada $640 Canada $1,340 Canada $1,040 22 Canada $580 U.S $1,395 U.S. $1,095 23 Mexico $500 U.S. $1,460 U.S. $1,160 24 Mexico $480 U.S. $1,540 U.S. $1,240 25 U.S. $460 U.S. $1,620 U.S. $1,320 26 Mexico $440 U.S. $1,700 U.S. $1,400