If both China and the U.S. specialize in trade, it means that the countries have different opportunity costs to produce each good.
If a price floor is proposed and passed on steel, the result would be a surplus of steel.
<h3>Why would nations specialize and trade?</h3>
China and the U.S. in this scenario would specialize in producing one good and trade in the other because they have different opportunity costs in producing each good.
They will therefore produce the good that has a lower opportunity cost, and trade the good that has a higher cost.
<h3>What happens when a price floor is proposed?
</h3>
If a price floor is proposed and it is higher than the equilibrium price, it means that suppliers will make more money.
They will therefore produce more steel than the market needs and so there will be a surplus.
Find out more more on price floors at brainly.com/question/24827521.
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The Irrawaddy River plays an important role in history, economic development of Myanmar from the early period. It is used as a main means of transport of Burma ancestors and important trade routed between India and China.
The Mayflower Compact was signed on November 11, 1620. It was signed on the ship, and the ship was in Provincetown Harbor.
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Answer:
Released 50 years ago, the infamous report found that poverty and institutional racism were driving inner-city violence
