131 Fall 2020 1. This question should be answered on a separate piece of paper. Take a picture and scan/upload the picture. Please don't paste the picture in a Word file - the full image doesn't always come through Please make sure you answer each part of the question. You will only draw ONE graph. Please answer the questions using the same graph. Consider the market for building materials. The US imports many of these items from China although there is also some domestic production A. [20 points) Draw the market for building materials in the U.S. Label the domestic supply curve, the domestic demand curve, and the world price for building materials. Label the quantity of building materials consumed in the U.S., the quantity of building materials supplied in the U.S., and the amount of imports. B. [10 points) As part of the U.S. China trade war, the U.S. government imposed a tariff on imported building materials. Using your graph from part A, illustrate the tariff, What happens to the quantity of building materials consumed in the U.S., the quantity of building materials supplied in the U.S., and the amount of imports? C. [10 points] Who bears the burden of the tariff (tax burden)? Explain. D. [10 points] Who benefits and who loses from this tariff? What happens to social surplus? (Non-anonymous question) * DS (50 Points)