China is a big manufacturer of bone china crockery. It has indulged in dumping i.e. flooding the international market with its cheaper crockery to capture the world market. Suppose, China exports a large amount of crockery to India.
(a) How will it affect price and quantity sold of crockery in India?
(b)If the demand for crockery is relatively elastic, how will it affect India’s total expenditure on crockery