Suppose Canada reduces a tariff on imported solar panels from 20% to 5%.We would expect to observe

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When Canada reduces the tariff on solar panels, this lowers the cost of importing solar panels for Canadian consumers and businesses, which makes it more likely that they will purchase them. As a result, we would expect to observe an increase in the number of solar panels imported into Canada. The other choices are not applicable, as there is no reason to expect a shift in the demand curve or a change in Canada's terms of trade, and there is no reason to expect a change in tariff revenue if the tariff rate is lowered.

Suppose Canada Reduces a Tariff on Imported Solar Panels from 20