Consider the annual market for imported solar panels in Australia with an upward sloping supply curve and downward sloping demand curve.

1. Draw a diagram showing the annual market for imported solar panels in Australia. Include and label the demand curve, supply curve, equilibrium price and quantity.
2. If the price was temporarily above equilibrium explain how it would return to equilibrium.
3. If the $A depreciates so that importing goods is more expensive, show and explain any changes in demand or supply and equilibrium price and quantity of imported solar panels in Australia.
4. If the price of coal fired electricity increases show and explain any changes in demand or supply and equilibrium price and quantity for imported solar panels in Australia. State any assumptions you are making about the relationship between coal fired electricity and solar panels.