I have a Strategy session for ECON 601 class. Our book is from has a cases from 2008 through 2013 please look at the attached strategy session and give an example for same kind a problem what we are having now . This will be only one or two paragraph explaining the session and combined the what happened and what was the solution it was taking by government or the company.

CHAPTER 1. I STRATEGY SESSION, Using the Law of Supply and Demand to Invest in Stocks First Solar Inc. of Tempe, Arizona, the world's Tax incentives designed to encourage homeown- largest producer of thin film solar panels, had 23% ers and businesses in Italy and Germany are expir- of their outstanding shares sell short. Q-Cells SE, a ing, leading to a leftward shift in the demand curve for solar panels. At the same time, China's JA Solar German company, had 54% of its shares sold short. Holdings Co. and Suntech [the two largest solar cell Nine other large producers have large amounts of makers by capacity in the world) are greatly expand- shares sold short (although none as much as First ing their production capacity las were other solar Solar and Q-Cells SEI. The solar industries' stocks panel makers). This has led the supply curve to shift have a history of volatility, so much so that Shawn to the right. As discussed in this chapter, a leftward Kravetz of Esplanade Capital (a Boston hedge fund] demand shift alone will cause prices to fall, and a and his colleagues have dubbed the industry: the rightward shift in supply alone will cause prices to "solarcoaster." fall. Put the two together, and prices really fall. How does one make money by knowing about Investors watch for these market shifts. These supply and demand? Watch for predicted price shifts price decreases do not bode well for firms making and then buy or sell the product itself in the market, solar panels. Those with high production costs would or buy or sell the stock in the market and cash out be most hurt, but those with low production costs in the futures market. Sound easy? It actually takes would still see a drop in profit margin. Savvy inves- nerve to be a speculator. fors know that stock prices are generally positively correlated with profits, so investors sold solar panel companies' stocks short, with the intention of buy- Source: "IBNI Shorts Sell "Solarcoaster' as China Glut Sinks ing back shares on the cheap when solar panel firms' Panel Prices," Bloomberg News, June 19, 2011, at www profits fell and hence stock prices fell. bloomberg.comews/2011-06-19/short-sellers-hammer- solarcoaster-as-glut-of-chinese-panels-sinks-prices.html