A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 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?
anonymous
 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

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0Since 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.
Ask your own question
Sign UpFind more explanations on OpenStudy
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...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 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.