1. Both foreign (Sf) and domestic steel (Sd) producers supply the US market (Sd+f is the combined supply curve) a. The domestic price is determined by the intersection of the domestic demand and the domestic + foreign supply. In the left supply and demand diagram, insert dashed lines to show the price and quantity for 1) total domestic sales, 2) domestic producer sales, and 3) foreign producer sales. b. The US imposes a $200 per ton excise tariff on foreign steel imports to the US, as shown in the right supply and demand diagram. Insert dashed lines to show the new price and quantity for 1) total domestic sales, 2) domestic producer sales, and 3) foreign producer sales (4 inserted lines in each diagram).
   

US Steel Market Before Tariff US Steel Market with Tariff 12.0 120 10.0 10.0 8TO 8.0 Price per Ton in 100s USD 6.0 Price per Ton in 100s USD 6.0 40 2.0 2.0 0.0 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 Millions of Tons per Year Millions of Tons per Year -D D