You are the manager of a small Canadian steel production firm operating in a perfectly competitive market. Two events have caught your attention recently: 1) the recent dip in Canadian economic growth has resulted in a 5% decrease in demand for steel; and 2) The market supply of steel has increased by about 4% due to market entry by foreign competitors. Based on this information, should you plan to increase or decrease production in the short-run? Explain using diagrams.