The Figure Given Below Represents the U

Multiple Choice

The figure given below represents the U.S. market for steel imports from Korea. The Korean government provides an export subsidy of $25 per ton, and Korean firms use the subsidy to reduce their export price to the United States to $375 per ton. Suppose the United States now imposes a countervailing duty on its steel imports from Korea to offset the impact of the subsidy provided by the Korean government on its steel exports. Calculate the change in the national welfare of the U.S. due to the imposition of this duty.

A) -$375 million
B) +$3.375 billion
C) +$3.75 billion
D) -$4.125 billion