1. Both domestic (Sd) and foreign steel (Sf) producers supply the US market (Sd+f is the combined supply curve).

The domestic price is determined by the intersection of the domestic demand and the domestic + foreign supply. All producers must accept this price (as in perfect competition). Insert dashed lines to show 1) the price and quantity for 2) total steel supplied in the US, 3) foreign supply, and 4) domestic supply (4 inserted lines).

Price per Ton in 100s USD 12 11 10 10 US Steel Market Before Tariff 20 30 40 50 60 70 Millions of Tons per Year e 5+ 80 90 100