1)“As more people buy cell phones, the demand for cell-phone service increases and the price of cell service falls, which decreases the supply of cell service

1)“As more people buy cell phones, the demand for cell-phone service increases and the price of cell service falls, which decreases the supply of cell service.” Is this statement true or false? Explain.

2. Steel output set for historic drop Steel producers expect to cut output by 10 percent in response to cancelled orders from construction companies and car and appliance producers.

Explain how the cancellation of orders change the market for steel. What happens to the equilibrium price of steel?