In the short run, demand and not prices, determine the production of inputs such as steel.

Name: In the short run, demand and not prices, determine the production of inputs such as steel.
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In the short run, firms are typically producing at a level where their marginal cost is equal to the price they can sell their product for. Therefore, changes in demand will affect the production levels of inputs such as steel without necessarily causing significant changes in the price of the input in the short run.

In the Short Run, Demand and Not Prices, Determine the Production