Suppose that rather than the declining demand assumed

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1. Suppose that rather than the declining demand assumed in Example 2.7, a decrease in the cost of copper production causes the supply curve to shift to the right by 40 percent. How will the price of copper change?

2. Suppose the demand for natural gas is perfectly inelastic. What would be the effect, if any, of natural gas price controls?

Reference no: EM13321451

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