anonymous
  • anonymous
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?
OCW Scholar - Principles of Microeconomics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
jamiebookeater
  • jamiebookeater
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
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.

Looking for something else?

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