The U.S. Consumer Safety Board is considering a regulation that would require automakers to increase the steel content of automobile frames from 42 percent to 54 percent.

(a) Using two graphs—one for the U.S. steel market and one for a typical U.S. steel manufacturer—show the impact that this proposal would have on the

(b) short-run and

(c) long-run profitability of existing steel producers.

(d) What do you think would happen to the amount of steel imported in the United States, given that there are high-cost environmental regulations currently in place for U.S. steel production? Explain your answer.