Effects of Tariff (Redistributive, Protective, Revenue, Consumption, & Total consumer surplus loss) must be quantified as well as identified on graph. See attached word document Document Preview:...

Effects of Tariff (Redistributive, Protective, Revenue, Consumption, & Total consumer surplus loss) must be quantified as well as identified on graph. See attached word document




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: ______________________