Refer to the figure below to answer the following questions.
Figure 7.2.2
The figure shows the market for helicopters in Canada, where D is the domestic demand curve and S is the domestic supply curve. Canada trades helicopters with the rest of the world at a price of $36 million per helicopter.
-In Figure 7.2.2, international trade ________ producer surplus in Canada by ________.
Definitions:
Labor Supply
The collective amount of time employees are prepared and capable of working for a specified pay rate, during a certain timeframe.
Perfectly Elastic
A situation in which any small change in price leads to an infinite change in quantity demanded or supplied.
Payroll Tax
Charges instituted on both employers and workers, typically a percentage of the employment remunerations.
Tax Burden
the measure of the total taxes imposed on individuals or businesses by the government.
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