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Domestic Supply for Steel, Qs = 100P. Domestic Demand, Qd = 11000 -10P. Draw the American...

  1. Domestic Supply for Steel, Qs = 100P. Domestic Demand, Qd = 11000 -10P. Draw the American (domestic) Market for steel with an Equilibrium DOMESTIC Price of $100 a ton.
    1. Draw in a world Price line at $50.
    2. Assuming there is free trade
      1. How much is domestically produced?
      2. How much is domestically demanded?
      3. How much is imported?
    3. Now the US government adds a $20 tariff per ton.
      1. How much is domestically produced?
      2. How much is domestically demanded?
      3. How much is imported?
      4. Label with tariff
        1. PS
        2. CS
        3. GR
        4. DWL

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