Carefully explain what is happening in the following market.  Indicate the impact if any on demand, supply, price and quality. Electricity is a major input into the production of aluminum, and aluminum is a substitute in supply for steel.  In the market for steel the effect of an increase in price of electricity Impact on supply impact on price impact on quantity impact on demand

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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Carefully explain what is happening in the following market.  Indicate the impact if any on demand, supply, price and quality.

Electricity is a major input into the production of aluminum, and aluminum is a substitute in supply for steel.  In the market for steel the effect of an increase in price of electricity

  • Impact on supply
  • impact on price
  • impact on quantity
  • impact on demand
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