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. O
nce 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.
During the autarky, the price of steel in Russia was $1,000.
After the trade, the price fell to $650. This means that Russia started importing steel from other countries where it was cheaper. This caused the price of steel in Russia to fall to the level of the world price.
This happens because at price $1,000 consumers will purchase from foreign producers. This will reduce the demand for domestic producers. This decrease in demand will shift the demand curve to the left such that the price falls to $650.
The Department of State advises the President and leads the nation in foreign policy issues. The State Department negotiates treaties and agreements with foreign entities, and represents the United States at the United Nations.
