Interesting that there is precedence in Canada for the governing party to choose to remain in power despite having less seats than an opposition party.
From Wikipedia, 1925 election
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The election resulted in the incumbent Liberal government of Mackenzie King being reduced to 101 seats in the House of Commons, while the opposition Conservatives actually took the most seats (116). All others won 26 seats, 24 of them won by the Progressives. King chose to carry on in government and face the new Parliament seeking its confidence.
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Would Harper look to Trudeau to back him in a confidence vote were the NDP to elect a few more members, but not have a majority?
I doubt it would fly today... but interesting for discussion purposes.