7. Steel Industry Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. Supply 88 100 Demand 90 00 70 00 50 40 2889 Price of Steel (Dollars per ton), 20 282 10 0 0 100 200 300 400 500 000 700 800 900 1000 Quantity of Steel (Tons) Triangle Polygon Price of Steel (Dollars 20 8 8 20 10 100 200 300 400 500 000 700 800 900 1000 Quantity of Steel (Tons) Polygon Because this country exports steel, the world price is represented by Suppose that a "pro-trade" government decides to subsidize the export of steel by paying $10 for each ton sold abroad. With this export subsidy, the price paid by domestic consumers is S ton. The quantity of steel consumed by domestic consumers per ton, and the price received by domestic producers is S the quantity of steel produced by domestic producers , and the quantity of steel exported True or False: With the export subsidy, domestic producers will not sell any steel to domestic consumers. O True O False Under the export subsidy, consumer surplus is S As a result, total surplus and producer surplus is 5 . Government revenue. by per