Question:

Use supply and demand curves to illustrate the following:

a) The government of Nova Scotia restricts the fishermen from catching cod, an endangered species. Illustrate the impact of this legislation on

1) The restaurant industry

2) The labour market

b) Due to the recession of 1991, incoMeand employment fell in Toronto. Illustrate the impact of this decline in the automobile industry.

c) The United States is a major trading partner of Canada. Assume the value of the Canadian dollar falls with respect to the US dollar. Discuss the impact of a low Canadian dollar on the quantity demanded of American beef.

d) In many urban cities of the world rents are fixed. Discuss the impact of lifting this restriction on the housing market.