If an automobile maker producing a certain kind of car suddenly experiences a decrease in the demand for the car. In the short run,
A) the demand for steel goes down but the price of steel stays the same.
B) the demand for steel goes up and the price of steel goes up by a lot.
C) the demand for steel goes down and the price of steel goes down by a lot.
D) the demand for steel goes up but the steel prices remain the same.

Question

Quizplus · Accepted Answer

In the short run, the demand for steel will decrease as the demand for cars decreases. However, the price of steel is likely to remain the same as there is no change in the supply of steel.

If an Automobile Maker Producing a Certain Kind of Car