Help me understand the following, Suppose the government removes all restrictions on the import of washing machines
Question:
Help me understand the following,
Suppose the government removes all restrictions on the import of washing machines to the U.S. Use the 3-step method of analysis to determine what the demand and supply model predicts with be the effect on equilibrium price and quantity in the market for washing machines in the U.S. Carefully explain each step of the analysis. Then answer the following questions: (a) Does the model imply that U.S. consumers are benefitted or harmed? Explain how and why or why not. (b) Does the model imply that U.S. washing machine manufacturing companies are benefitted or harmed? Explain how and why or why not.
The price of gasoline drops dramatically and unexpectedly. What is likely to happen to price and quantity in the market for automobiles? Use the 3-step method of analysis. Carefully explain each step of the analysis.