Macroeconomics 11th Edition by Michael Parkin

Exercise 35

After you have studied Reading Between the Lines on pp. 388-389, answer the following questions.
a. What events put U.S. solar panel producers under pressure?
b. Explain how a tariff on solar panel imports changes domestic production, consumption, and imports of solar panels.
c. Illustrate your answer to part (b) with an appropriate graphical analysis assuming that imports are not completely eliminated.
d. Explain how a U.S. tariff on solar panel imports produces winners and losers in the United States and why the losses exceed the gains.