« previous next »

Author Question: A decrease in the supply of steel results in a shortage of steel at the original equilibrium price. ... (Read 155 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?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Agonists, partial agonists, and antagonists: (a) An agonist results in maximum response. (b) A ... Agonists, partial agonists, and antagonists: (a) An agonist results in maximum response. (b) A ...
Carbon dioxide. This molecule exhibits a nonpolar bond and results in a linear and symmetrical ... Carbon dioxide. This molecule exhibits a nonpolar bond and results in a linear and symmetrical ...
Position of the fetus in late pregnancy results in stresses on the mother’s body. Position of the fetus in late pregnancy results in stresses on the mother’s body.
What mass, in grams, of a 5.00% by mass sugar water solution is needed to supply What mass, in grams, of a 5.00% by mass sugar water solution is needed to supply
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
The Hardy–Weinberg equilibrium for two autosomal alleles. The Hardy–Weinberg equilibrium for two autosomal alleles.
Video: Febrile Seizure

For a complete list of videos, visit our video library