Problem:
Suppose Germany imposes a $10 per barrel tariff on imported refined oil products.
Requirement:
Question 1: What is the short run profit outlook for German refineries? What is the long term profit outlook?
Question 2: Suppose that eight years after imposing this tariff Germany revokes it. What is likely to happen to the refining industry at that time.
Note: Please describe comprehensively and provide step by step solution.