America manufactures 90 million tons of steel annually but domestic demand is 120 million tons.The global market price (world price) for steel is $500/ton, at which America imports the 30 million tons it does not produce domestically.Domestic demand is not constrained by domestic supply as a result.

If America imposes a 25% tariff on imports (price rises to $625/ton), domestic production rises to 100 million tons while the quantity demanded falls to 112 million tons.

Calculate the change in surplus for:

a)consumers

b)domestic producers

c)the government

d)Calculate the deadweight loss to society resulting from the tariff