Problem
Import Restrictions and the Price of Steel. Suppose import restrictions on steel decrease the supply of steel by 24 percent. The initial price of steel is $100 per unit, the elasticity of demand is 0.70, and the elasticity of supply is 2.3. Predict the effect of the import restrictions on the equilibrium price of steel. Illustrate your answer with a graph that shows the initial point (a) and the new equilibrium.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.