As an economist you have been asked to write a report graphing and quantifying the effects of the removal of the U.S. steel subsidy ($150 per ton) on consumers, producers, government revenue and efficiency. In the report you have to include a recommendation for either the removal or the continuation of the subsidy. You are given the following information:

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Existing situation | Estimated situation

with subsidy | without subsidy

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World price: m$ 200 per ton $ 300 per ton U.S. consumption (billions): 50 10 U.S. exports (billions): 250 100

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Graph:

Recommendation: