The monthly US steel production market (in millions of tons per month) is described in the table
Question:
The monthly US steel production market (in millions of tons per month) is described in the table below. An increase in the price of iron ore, a critical input in steel production, shifts the supply curve to the left, decreasing supply by 200,000 tons at each price.
Instructions: Round your answers to one decimal place.
to. Fill in the new supply schedule in the table using the "New quantity of steel supplied" column.
US steel market
| Price (dollars per ton) | Initial Quantity of Steel Demanded (millions of tons) | Initial quantity of steel supplied (million tons) | New Quantity of Steel Supplied (million tons) |
| $650 | 1.1 | 2.1 | |
| 640 | 1.2 | 2 | |
| 630 | 1.3 | 1.9 | |
| 620 | 1.4 | 1.8 | |
| 610 | 1.5 | 1.7 | |
| 600 | 1.6 | 1.6 | |
| 590 | 1.7 | 1.5 | |
| 580 | 1.8 | 1.4 | |
| 570 | 1.9 | 1.3 | |
| 560 | 2 | 1.2 |
b. What are the initial equilibrium price and quantity in the steel market?
P = $ per ton
Q = million tons of steel
C. What are the new equilibrium price and quantity in the market?
P = $ per ton
Q = million tons of steel
rev: 28_06_2018
Expert Answer:
To fill in the new quantity of steel supplied column We know that the supply decreases by 200000 ton... View the full answer
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein
