The Federal Department of Industry and Science has cut its price forecast for iron ore in 2015 by 10 per cent to $US54.40 a tonne, citing a weak outlook for China's steel sector. The commodity - which climbed as high as $US65.61 a tonne on June 11, the peak in its recent rebound from April lows - was bringing $US61.29 on Monday night and many analysts predicted further falls. The department's forecast for 2016 was $US52.10 a tonne. "China's steel production is forecast to contract in 2015 and 2016 as the seaborne supply of iron ore increases," the department said in its latest quarterly update. Iron ore is a key ingredient of steel.
Question 1. Using demand and supply analysis, explain the impact of the change in commodity price on the market for iron ore mine workers.
Question 2. Using demand and supply analysis, explain the impact of the change in commodity price on the market for rental properties in mining towns.