(a) Illustrate, using a Supply and Demand diagram for washing machines in the US, the market situation prior to any imposition of a tariff on imported washing machines.

(b) Identify on the diagram:

1. The current market price (PW)
2. Domestic production (Qs1)
3. Domestic consumption (Qd1)
4. The quantity imported

(c) Now analyze the effect of Trumps tariffs on imported washing machines from China. Using the supply/demand diagram from part (b), identify on the diagram what effect the tariffs had on:

1. Domestic production (Qs2)
2. Domestic consumption (Qd2)
3. The market price for washing machines in the US (PT)
4. The quantity imported
5. The amount of tariff revenue collected.

(d) In addition to the tariffs on washing machines, Trump also increased tariffs on imported steel. What impact would the steel tariffs have on the washing machine market in the US? How would this be reflected in the Supply and Demand diagram you used in part c? Would companies like Whirlpool benefit from those steel tariffs?

(e) Do you support President Trump's proposed tariffs on Chinese goods? Why or why not? Why do you think tariffs persist for so long once they are set?