Asked by Mahammed Bindawood on Jun 17, 2024
Verified
The world price of a ton of steel is $650. Before Russia allowed trade in steel, the price of a ton of steel there was $1,000. Once Russia allowed trade in steel with other countries, Russia began
A) exporting steel and the price per ton in Russia decreased to $650.
B) exporting steel and the price per ton in Russia remained at $1,000.
C) importing steel and the price per ton in Russia decreased to $650.
D) importing steel and the price per ton in Russia remained at $1,000.
World Price
The international market price of a good, influenced by global supply and demand factors.
Importing Steel
The act of bringing in steel from other countries to meet domestic demand or for manufacturing purposes, often due to a lack of local supply or cost effectiveness.
Price Per Ton
Price per ton is a measurement of cost used to evaluate bulk materials, indicating how much a buyer must pay for a thousand kilograms of the material.
- Evaluate the repercussions of unrestricted and regulated trade on home-based producers and consumers.
Verified Answer
BN
Bryan NacuaJun 22, 2024
Final Answer :
C
Explanation :
Since the world price of steel is lower than the domestic price in Russia before trade ($650 vs. $1,000), Russia would start importing steel to take advantage of the lower world price, which would cause the domestic price to decrease to the world price of $650.
Learning Objectives
- Evaluate the repercussions of unrestricted and regulated trade on home-based producers and consumers.