China is a huge manufacturer of technology of telephone devices. It has lately become a member of W.T.O. that means it can sell its products in other member countries such as India. Assume that it does export a big number of telephone instruments to India:
(i) How will it influence the price and quantity sold of telephone devices in India?
(ii) Assume that the demand for telephone devices is relatively elastic. How will it influence India’s total expenses on telephone devices?