The table below shows the market for wool in Canada, which Is closed to trade. Quantity Quantity Price per Tonne Demanded Supplied ($) Domestically Domestically 1, 209 150 1,390 145 65 1,406 146 1,506 135 95 1, 60 138 118 1,706 125 125 1,806 1,906 115 165 a) What is the present equilibrium price and domestic production? Price: $ 1700 Domestic production: 125 @ tonnes. bj Suppose that Canada now opens up to free trade and the world price of wool is $1,500 per tonne. How much wool will Canada produce domestically, and how much will it Import? Domestic production: | 1900 0 Imports: 40 c) Assume that the Canadian government, under pressure from the Canadian wool Industry, decides to Impose an Import quota of 20 tonnes. What will be the new price, and how much will the Canadian Industry produce? Price: $ 1600 0 Domestic production: 110 tonnes. dj Now suppose that the Canadian government decides to replace the Import quota with a tariff. If It wishes to maintain domestic production at the same level as with a quota, what should be the amount of the tariff, and how much revenue will government receive? Tariff. $ 100 Tariff revenue: $ 5000 0The table below shows the aggregate demand for the economy of Itera. Its potential GDP (LAS) Is $850. Price Index Aggregate Quantity Demanded 850 110 750 130 a. Draw the aggregate demand curve and the potential GDP (LAS) curve In the graphing area below. Plot only the endpoints of each curve In the graphing area using the appropriate tool. Once all points have been plotted. click on the line (not Individual points) and a tool Icon will pop up. You can use this to enter exact co-ordinates for your points as needed. Aggregate Demand for the economy of Itera AS 130 Tools 120 AD Potential GDP 110 AD Price Index 70 500 600 700 800 900 1000 1100 Real GDP b. The equilibrium level of GDP Is $ gog] and the price Index Is 90] c. There Is a recessionary ] gap In Itera of $ 50] d. If aggregate demand in Itera were to Increase by $150, draw the new (AD2) curve in the graphing area above. Remember to plot only the endpoints of the curve. e. The new equilibrium level of GDP Is $ and the price Index Is [ f. Now there Is an inflationary v gap In Itera of $