« previous next »

Author Question: A decrease in the supply of steel results in a shortage of steel at the original equilibrium price. ... (Read 127 times)

Frost2351

  • Hero Member
  • *****
  • Posts: 557
on: Jun 29, 2018
A decrease in the supply of steel results in a shortage of steel at the original equilibrium price. Explain how market forces will act to eliminate the shortage.
 
  What will be an ideal response?

Question 2

What is the difference between total utility and marginal utility?
 
  What will be an ideal response?


ttt030911

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jun 29, 2018
Answer to Question 1

The price of steel will rise. As it rises, the quantity of steel supplied will rise and the quantity of steel demanded will fall. Eventually, at the new market equilibrium price, quantity demanded will be equal to quantity supplied. The market will be in equilibrium.

Answer to Question 2

Total utility is the total amount of satisfaction obtained from the consumption of a
good or a service. Marginal utility is the additional satisfaction gained by the
consumption of one more unit of a good or service.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Frost2351

  • Hero Member
  • *****
  • Posts: 557
Reply #2 on: Jun 29, 2018
Thank you :)


ttt030911

  • Sr. Member
  • ****
  • Posts: 315
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

(a) Feeding by bear on salmon results in large allochthonous inputs of nutrients into (b) the forest (a) Feeding by bear on salmon results in large allochthonous inputs of nutrients into (b) the forest
An enlarged heart showing the results of cardiomyopathy. An enlarged heart showing the results of cardiomyopathy.
(a) Initial mtDNA results suggested modern humans and Neadertals were equally distantly related to D (a) Initial mtDNA results suggested modern humans and Neadertals were equally distantly related to D
Mental Health in the U.S: Survery Results Mental Health in the U.S: Survery Results
Results of a genome-wide association study (GWAS) to detect SNPs Results of a genome-wide association study (GWAS) to detect SNPs
phylogenetic results using the TCF7L2 transcripting mRNA sequence for the 4 listed taxa phylogenetic results using the TCF7L2 transcripting mRNA sequence for the 4 listed taxa
Video: How proteins function? How do proteins work?

For a complete list of videos, visit our video library