Part B: Short Answer

[10 Marks] The Canadian and American beef markets are highly integrated. Canadian ranchers typically sell a large portion of their stock to American consumers. In May 2003, a case of Mad Cow Disease was discovered in Alberta. Although most Canadian beef was safe to eat, the United States imposed a ban on Canadian beef imports. Thus, American consumers could only buy American beef and Canadian ranchers could only sell to Canadian consumers. Using two diagrams - one for the Canadian beef market and one for the American beef market - use the supply and demand framework developed in class to explain the effects of this ban on the Canadian and American beef markets. (Be sure to label all points on your diagrams)