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
definition of abnormal isoquant and normal isoquant


Variable and Total cost curve    * Consequently (from the table which is given): - MC initially decreases with increasing returns  0 through 4 units of output

explain 6 factors that determine volume of production

Comparison of sameulson revealed preference theory with the Hicksian revealed preference theoru

what are the merits and demerits of deductive inductive methods in economic analysis?

discuss whether marginal utility is a realistic piece of economic analysis in explaining consumer demand

Product Markets: Markets where produced services and goods are bought and sold (distinguished from markets for factors of production). Production: Process by which human labour

An economist's view of costs contains both explicit and implicit costs.  Explicit costs are accounting costs, and implicit costs are the opportunity costs of an allocation of resou

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4