Question

Suppose Canada forms a free-trade agreement with the Netherlands and increases the quantity of tulips it imports. Canadian tulip consumers will be _____ and Canadian tulip producers will be _____.

Answer 1

Based on the scenario above, it is likely that the Canadian tulip consumers will likely be worse off and that the Canadian tulip producers will be better off. It is because as the producers increases its import, it is likely that they will benefit from it whereas the consumers will likely be at the disadvantage because the product that they are likely to buy will decrease.