Based on the world price of $40, if Canada engaged in free trade, the tons of salt imported would be 1,200 tons.
If a tariff of $20 per ton was imposed, the new price would be $60.
How much salt would Canada import?
Canada would import:
= Domestic demand at $40 - Domestic supply at $40
= 1,800 - 600
= 1,200 tons
If the government imposed $20 tariffs on salt, the price would go to:
= Price of salt + tariff
= 40 + 20
= $60
Find out more on tariffs at https://brainly.com/question/1172085.
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