Problem - The steel industry has been lobbying for high taxes on imported steel. Russia, Brazil, and Japan have been producing and selling steel on world markets at $610 per metric ton, well below what equilibrium would be in the United States with no imports. If no imported steel was permitted into the country, the equilibrium price would be $970 per metric ton.
1) Using the line drawing tool, draw the demand curve consistent with the equilibrium pice, the world price and Qn (the quantity demanded at a the world price). Properly label your line.
2) Using the line drawing tool, draw the supply curve consistent with the equilibrium price, the world price and Q (the quantity supplied at the world price). Properly label your line.
3) Using the point drawing toot, indicate the equilibrium price and quantity with no imports.
4) Using the line drawing tool, draw a line, at the world price, representing the quantity of steel produced domestically. Properly label your line.
5) Using the tine drawing tool, draw a line, at the world price, representing the quantity of steel imported. Properly label your line.