In 2012, the United States imposed countervailing duties ranging from 24% to 36% on imports of solar panels from China. Which of the following do you predict will happen if the United States decides to eliminate these duties?

A. The U.S. price of solar panels will fall.
B. U.S. production of solar panels will rise.
C. U.S. imports of Chinese solar panels will fall.
D. The U.S. price of solar panels will rise.

U.S. production of solar panels will rise do you predict will happen if the United States decides to eliminate these duties. correct option is b.

If the United States decides to eliminate countervailing duties on imports of solar panels from China, it is likely to result in an increase in U.S. production of solar panels. Eliminating the duties would make it more cost-effective for U.S. manufacturers to produce solar panels domestically rather than relying on imports from China. This could lead to an expansion of the domestic solar panel industry, increased production capacity, and potentially lower prices for U.S. consumers as competition within the U.S. market intensifies.

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