The demand for oranges in Canada is given by D = 1000 - 100P and supply by domes

Question

The demand for oranges in Canada is given by D = 1000 - 100P and supply by domestic producers is S = 200 P - 200. The word price for organs is $2. Provide a labeled diagram and supporting calculations to explain how will a tariff of $1 would affect consumer, producer and government surplus in the market for oranges. Ada suggests that this tariff would be bad news for our Canadian apple growers because apples because apples are a substitute m consumption for oranges Do you agree with Ada's claim?

Explanation / Answer

based on this we can drag that, the demand is for= D= 1000-100P= 1000-100*2= 1000 units

suplpy= 200P-200, 200*2-200= 400-200= 200 only

b. we can not say that if taxes on oranges increase it helps to increase in cultivation of apples

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