Reconsider the US car market with no tariff on imported cars. Now, imagine that a foreign enemy drops a bomb on the major port in Los Angeles, which reduces the US capacity to receive imported cars (they are unable to unload ships at the dock) by 50%. Show the following on a diagram of the US car market: a. The reduction in imports
b. The loss (of consumer surplus) to US consumers
c. The gain (of producer surplus) to US car manufacturers
d. Deadweight loss