Carefully explain what is happening in the following markets.  Indicate the impact if any on demand, supply, price and quantity.  Electricity is a major input into the production of aluminium and aluminium is a substitute in supply for steel, the market for steel the effect of an increase in price of electricity. (i) Impact on Demand? (ii) Impact on Supply? (iii) Impact on Price?

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
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Carefully explain what is happening in the following markets.  Indicate the impact if any on demand, supply, price and quantity. 

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

(i) Impact on Demand?

(ii) Impact on Supply?

(iii) Impact on Price?

(iv) Impact on Quantity?

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