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China slowdown could bring good news China\'s economic slowdown couild help nedu

ID: 1131103 • Letter: C

Question

China slowdown could bring good news China's economic slowdown couild help neduce the cost of stoel used by U.s. suto makers Source: Wall Street Journal, Septomber 8, 2015 Explain how an economic slowdown n China ituences the gkba" steel manut u What happens to the equilibrium price of steel? to demand br steel wil of steel in the global market suppled ll ue OA not change; but it will dearease O A not change; increase OB. fa not change Oc.increase ut O B. decrease but not change C. decrease and increase rics O D. decrease, and wll decrease Click to select your answer 01/08/18 ASSESS Chapter 12 air o of 1 MacBook Air 3 8 0

Explanation / Answer

Answer:- China’s economic slowdown will ...............the demand for the steel   ................ the supply of steel in the global market

Correct Answer:- B:- Decrease; but not change

Reason:- Due to economic slowdown, there will be a lesser requirement of steel due to reduction in production and construction activities. However, as there is no other factors dominating in the world market, the supply will remain in its early stage i.e. no change in the supply of steel.

Answer:- In the global market for steel, the equilibrium price will ................ and the quantity supplied will .....................

Correct Answer:- D:- Fall; Decrease

Reason:- Due to decline in the demand, the equilibrium price will fall down, as there will be reduction in the price, this will make a negative impact on the supply as due to lower prices, suppliers will supply lesser quantities of steel.

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