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SUPPOSE THE WORLD PRICE FOR STEEL IN BELOW THE U.S. DOMESTIC PRICE, BUT THE GOVERNMENT REQUIRES THAT ALL STEAL USED IN THE U.S. BE DOMESTICALY PRODUCED.
A. USE A DIAGRAM TO SHOW GAINS AND LOSES FROM SUCH A POLICY.
B. HOW COULD YOU ESTIMATE THE NET WELFARE LOSS (DEAD WEIGHT LOSS)FROM SUCH A DIAGRAM?
C. WHAT RESPONCE TO SUCH A POLICY WOULD YOU EXPECT FROM INDUSTRIES LIKE AUTOMOBILE PRODUCERS, THAT USE U.S. STEEL?
D. WHAT GOVERNMENT REVENUES ARE GENERATED BY THIS POLICY?
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