If the price of steel increases drastically, the quantity of ...

[kellyjaisingh]

If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because
 
  A) buyers of steel are less sensitive to a price change if they have more time to adjust to the price change.
  B) profits will fall by a greater amount in the long run than in the short run.
  C) buyers of steel are more sensitive to a price change if they have more time to adjust to the price change.
  D) sales revenue in the building industry will fall sharply.

Question 2

What is a private cost of production? What is a social cost of production? When is the private cost of production equal to the social cost of production?
 
  What will be an ideal response?

[Galvarado142]

Answer to Question 1

C

Answer to Question 2

Private cost of production is the cost borne by the producer of a good or service. Social cost of production is the total cost of producing a good or service, including both the private cost and any external cost. The private cost and the social cost are equal when no externalities exist.