Asked by Yenifer Medina on Jun 16, 2024
Verified
The world price of a ton of steel is $1,000. Before Russia allowed trade in steel, the price of a ton of steel there was $650. Once Russia allowed trade in steel with other countries, Russia began
A) exporting steel and the price per ton in Russia remained at $650.
B) exporting steel and the price per ton in Russia increased to $1,000.
C) importing steel and the price per ton in Russia remained at $650.
D) importing steel and the price per ton in Russia increased to $1,000.
World Price
The international market price of a good or service, influenced by factors like supply and demand, tariffs, and trade agreements.
Exporting Steel
The act of selling and shipping steel from one country to another, contributing to international trade.
Price Per Ton
A measure of how much a good costs per ton; commonly used in material and commodity markets.
- Study the impact that free and constrained trade has on domestic producers and consumers.
Verified Answer
AN
Allisya NicoleJun 19, 2024
Final Answer :
B
Explanation :
Since the world price of steel is higher than the domestic price in Russia before trade, Russia would export steel, causing the domestic price to rise towards the world price.
Learning Objectives
- Study the impact that free and constrained trade has on domestic producers and consumers.