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

a. 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 without Tariff 10 CO Price per Ton in 100s USD 4 0 0 10 20 30 40 50 60 70 80 90 100 Quanity in millions of tons per year D Sd Sf Sd+fUS Steel Market with Tariff 10 8 Price per Ton in 100s USD 6 4 2 0 0 10 20 30 40 50 60 70 80 90 100 Quantity in millions of tons per Year D Sd Sf Sd+f