Figure 9-6
-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

Question

Figure 9-6 
-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

Quizplus · Accepted Answer

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.

Figure 9-6 -The World Price of a Ton of Steel Is $650