Copper, Microeconomics

Around 2007, the world copper price was $2.00 per pound and 12 million metric tons per year was the quantity transacted. A) Assume copper’s demand elasticity is -.5 and supply elasticity is 1.5. From this information, assuming that copper supply and demand curves are linear (in price), derive their equations. B) Now, in addition, I told you that demand for copper is also linear in income and that copper’s income elasticity is 1.3, would you be able to predict, the impact on equilibrium price for a 1% increase in income? Original income is not needed to answer this question.
Posted Date: 4/3/2012 4:56:53 PM | Location : United States







Related Discussions:- Copper, Assignment Help, Ask Question on Copper, Get Answer, Expert's Help, Copper Discussions

Write discussion on Copper
Your posts are moderated
Related Questions
Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commod

A monopolist''s demand curve is P=100-2q. find his MR function. at what price is MR zero

Question: (a) Using an example, differentiate between private, social and external costs and benefits. (b) With the use of a diagram, describe the difference between profi

ASIAN DEVELOPMENT BANK; In addition to the World Bank family, there are three other international lending agencies operating only in specific geographical area, but run on lin

THEORY OF CONSUMER BEHAVIOR: It is generally observed that market aggregate demand curve for a commodity is downward sloping, given other things. Our problem is to investigate

Question 1: a) Describe the different types of unemployment that exist. b) Critically examine how monetary policy will be used to deal with inflation. c) Critically deter

There are six potential customers of computer games, each willing to buy only one game Consumer 1 is willing to pay $40, Consumer 2 is willing to pay $35, consumer 3 is willing to


The Acme Bakery in the seaside resort town of Malvino sells freshly baked bread to two categories of consumers: residents of the town and tourists. The weekly demand from touris

Capital Account: The capital account deals with long and short-term capital movement.These capital movements are referred to as autonomous because they take place for business o