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Suppose that several large companies simultaneously announce that they're going to invest heavily in public infrastructure, raising the price of steel and iron ore. What will happen to the quantity and price (wages) for iron miners?

User Rahul Gaur
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Answer: The simultaneous announcement by the large companies has raised the price of steel and iron ore, therefore, the quantity of iron ore supplied will INCREASE, and wages for Iron ore miners will also INCREASE.

Explanation:

The law of supply states that an increase in price will lead to an increase in quantity supplied.

Therefore the iron ore and steel supplied will increase in response to the increase their prices.

Also, the wages for iron miners will increase as well, as they will invariably demand for a pay increase. This is because:

1. They will have to put in more work in order to meet up with the quantity demanded by the large companies.

2. Wages for iron miners will increase because as the mining industry experiences an increase in revenues, it will also be reflected in their wages.

User Eshita Shukla
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