More S&D applications: Specify whether each group named will gain or lose, and discuss how/why they gain or lose.
a. If the President imposes tariffs (taxes) on imported steel, how does this affect domestic steel-makers? How does this affect the domestic appliance-manufacturers? [Hint: Draw the S&D for “imported steel”, and draw a separate S&D for “local steel”. Analyze how the tariff on imported steel will affect each of these two separate but related markets. Then draw the S&D for “appliances” and study how it is affected by your results in the steel-market analysis.]
b. If Europe removes restrictions on Chinese textiles/garments that could be sold in Europe, how does this affect European garment producers? How does this affect European buyers/consumers?