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The 2019 demand and supply for Montreal cannabis are: Demand: P=100-x Supply: P=10+x As a result...

The 2019 demand and supply for Montreal cannabis are:

Demand: P=100-x

Supply: P=10+x

As a result of a successful trade mission to New Zealand, it has agreed to buy Montreal cannabis. Their demand is:

P=80-2x

What are the economic effects of this trade? Show diagram.

Original Price and output? New price and output? Consumption by Montreal? Consumption by New Zealand?

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Expert Solution

Rahul Sunny answered 11 months ago
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