If the price of aluminium is $2,400 per ton, suppliers are willing to sell240 million tons of aluminium.
The minimum price that sellers are willing to sell 400 million tons of aluminium for is$4,000 per ton.
The chief source of aluminium is bauxite ore. The cost of extracting and refining aluminium from bauxite ores is small in China and Australia, while it is more expensive in other countries with a low natural occurrence of bauxite, such as Brazil and Jamaica. As the price of aluminium rises, the quantity supplied of aluminium willdecrease because producing aluminium willstop being profitable for countries such as Brazil and Jamaica.
This illustrates thelaw of supply , which describes the relationship between the price of a good or service and the quantity suppliedeven when other variables change .