Answer
Please see the graph.
The quantity of steel produced increases, as does the domestic price of steel. The quantity of steel consumed decreases. It is not a good policy as consumers are made worse off and total surplus decreases.
Work Step by Step
Consumer surplus decreases from $A+B+C$ to $A$.
Producer surplus increases from the sum of areas $F+G+H+I+J+K+L$ to the sum of areas $B+C+D+F+G+H+I+J+K+L$.
Government (or tax) revenue decreases from zero to the negative sum of the areas of $C+D+E$.
Total surplus changes from the sum of the areas $A+B+C+F+G+H+I+J+K+L$ to the sum of the areas $A+B-E+F+G+H+I+J+K+L$.
