The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries. Assume that all cheddar cheese is identical.

Producing Country

Canadian Price in $

Canadian Price in $

Under Free Trade

With a 40% Import Tariff

Canada

$10.00

United Kingdom

$9.00

United States

$8.00

a)Complete the table to include the 40% Import Tariff.

b)Suppose Canada and the United Kingdom negotiate a free-trade agreement in cheese. But Canada has a 40% tariff on cheese imported from other countries. From which country will Canada now buy its cheese?

c)Suppose Canada and the United States negotiate a free-trade agreement in cheese. But Canada has a 40% tariff on cheese imported from other countries. From which country will Canada now buy its cheese?

d) Assuming that a 40% tariff is in place and that Canadians buy only the lowest-priced cheddar cheese, from which country will Canada buy its cheese?

7) The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries. Assume that all cheddar cheese is identical. Producing Country lCanadian Price in $ Canadian Price in $ Under Free Trade With a 40% Import Tariff Canada $1 0.00 United Kingdom $9.00 United States $8.00 a) Complete the table to include the 40% Import Tariff. b) Suppose Canada and the United Kingdom negotiate a free-trade agreement in cheese. But Canada has a 40% tariffon cheese imported from other countries. From which country will Canada now buy its cheese? c) Suppose Canada and the United States negotiate a free-trade agreement in cheese. But Canada has a 40% tariff on cheese imported from other countries From which country will Canada now buy its cheese? d) Assuming that a 40% tariff is in place and that Canadians buy only the lowestpriced cheddar cheese, from which country will Canada buy its cheese