A community for students.

    Here's the question you clicked on:

    55 members online
    • 0 replying
    • 0 viewing


    • 3 years ago

    suppose that there is a significant decline in the price of iron ore(used in making steel). What would happen to the equilibrium price and quantity of steel?

    • This Question is Closed
    1. mokchhya
      • 3 years ago
      Best Response
      You've already chosen the best response.
      Medals 0

      Since the production cost will be decreased due to decline in the price of iron ore, there will be an increase in supply . So, the supply curve shifts downward whereas the demand curve remains as it is resulting in an new equilibrium point with decreased price and increased quantity. Please refer to the attached diagram to see what happens when there is a shift in curve(s) -- demand or supply or both. Hope this helps.

    2. Not the answer you are looking for?
      Search for more explanations.

      • Attachments:

    Ask your own question

    Sign Up
    Find more explanations on OpenStudy
    Privacy Policy

    Your question is ready. Sign up for free to start getting answers.

    spraguer (Moderator)
    5 → View Detailed Profile

    is replying to Can someone tell me what button the professor is hitting...


    • Teamwork 19 Teammate
    • Problem Solving 19 Hero
    • You have blocked this person.
    • ✔ You're a fan Checking fan status...

    Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

    This is the testimonial you wrote.
    You haven't written a testimonial for Owlfred.