16. Study Questions #16. Ch 3. Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price Quantity Supplied (Dollars per ton) (Domestic) (Domestic plus Imports) Quantity Demanded 100 0 15 200 O UA W N H A 14 300 CO 13 400 12 12 500 16 11 600 20 10 700 24 9 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. 700 Demand 600 PRICE (Dollars per ton) 500 Supply US free trade 400 300 Equilibrium Free trade 200 100 Supply World tariff 0 2 6 8 10 12 14 16 18 20 22 24 QUANTITY (Tons of steel) Equilibrium Tariff With free trade, the equilibrium price of steel is $ per ton. At this price, tons are purchased by U.S. buyers, tons are supplied by U.S. producers, and tons are imported. Suppose that to protect its producers from foreign competition, the U.S. government levies a specific tariff of $250 per ton on steel imports. As a result, the free trade curve shifts to the__ by an amount the amount of the tariff. On the previous graph, use the purple point (diamond symbol) to plot the new world supply curve after the tariff is imposed. Then use the grey point (star symbol) to indicate the equilibrium point given the tariff of $250. The new equilibrium is tons of steel traded at $ per ton. At this price, U.S. producers supply tons, and tons are imported