Using the following graph to answer the questions below
a. What would be the price of steel in the United States if a policy of "self-sufficiency" were established and no imports were allowed? How many tons of steel would be produced?
Price of steel: ______________________
Tons of steel: ______________________
b. If the world price of steel were $100 per ton and the United States adopted a free-trade policy, identify on the graph and state below how much steel would be produced in the United States, and how much would be imported.
Steel produced in US: ______________________
Steel imported: ______________________
c. Show on the graph and determine the dollar magnitudes of the different effects of a 20 percent tariff on steel imports.
Total consumer surplus loss: ______________________
Redistributive effect: ______________________
Protective effect: ______________________
Revenue effect: ______________________
Consumption effect: ______________________