Article Summary
According to JP Morgan Chase,increased shipments of Chinese steel over the past two years has generated a wave of protectionism from countries around the globe.Decreasing domestic demand and slower economic growth have resulted in a large increase in steel exports from China,driving down global prices.The almost doubling of Chinese steel exports since 2013 has steel mills in areas ranging from South Africa to Europe to India to the United States pushing their governments for protectionist measures against the Chinese-produced steel.
-Refer to the Article Summary.All else equal,if countries decide to enact protectionist measures against Chinese steel imports,the price of steel in those countries will ________ and the quantity of steel demanded in those countries will ________.
A)increase;increase
B)increase;decrease
C)decrease;increase
D)decrease;decrease

Question

Quizplus · Accepted Answer

Protectionist measures, such as tariffs or quotas, would likely increase the price of steel in those countries by reducing the supply of cheaper Chinese steel. As a result, the higher prices would lead to a decrease in the quantity of steel demanded.

Article Summary According to JP Morgan Chase,increased Shipments of Chinese Steel Over