The world price of a ton of steel is $1,000. Before Russia allowed trade in steel, the price of a ton of steel there was $650. Once Russia allowed trade in steel with other countries, Russia begana. importing steel and the price per ton in Russia remained at $650. b. exporting steel and the price per ton in Russia remained at $650. c. importing steel and the price per ton in Russia increased to $1,000. d. exporting steel and the price per ton in Russia increased to $1,000.

d.Exporting steel and the price per ton in Russia increased to $1,000.

Explanation:

As world price of ton of steel is less in Russia in world [ $650 < $1000]. So, rest of the world will buy cheaper steel from Russia, i.e Russia would export steel to rest of the world.

Russia exporting steel to rest of the world, reduces the domestic supply of steel in Russia. This decreased supply creates excess demand of steel in domestic russian market. Excess Demand creates competition among buyers & increases price of steel in domestic russian market. This would happen till price of steel in russian domestic market equates steel global price.

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