Source 1 “…neither an inventor nor an engineer, andrew carnegie recognized the promise not only of new processes but also of new ways of organizing industry. steel companies like carnegie’s acquired access to raw materials and markets and brought all stages of steel manufacturing, from smelting to rolling, into one mill. output soared, and prices fell. when andrew carnegie introduced the bessemer process in his plant in the mid-1870s, the price of steel plummeted from $100 a ton to $12 a ton by 1900. in turn, the production of a cheaper, stronger, more durable material than iron created new goods, new demands, and new markets, and it stimulated further technological change. bessemer furnaces, geared toward making steel rails, did not produce steel for building. experimentation with the open-hearth process that used very high temperatures resulted in steel for bridge and ship builders, engineers, architects, and even designers of subways. countless americans bought steel in more humble forms: wire, nails, bolts, needles, and screws. new power sources facilitated american industry’s shift to mass production and also suggest the importance of new ways of organizing research and innovation. in 1869, about half of the nation’s industrial power came from water. the opening of new anthracite deposits, however, cut the cost of coal, and american industry rapidly converted to steam. by 1900, steam engines generated 80 percent of the nation’s industrial energy supply… ~ nash et al., 610. 1. according to source 1, the price of steel plummeted in andrew carnegie’s plant in the mid-1870s because a. new anthracite deposits cut the cost of coal b. a stronger and more durable iron created increased demand for steel c. the bessemer process was introduced to the plant