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28 Sep 2019
Suppose that the equilibrium price of copper is 5 and the equilibrium quantity of copper is 20. At the market equilibrium, the price elasticity of demand for copper is -0.5, and the price elasticity of supply for copper is 1.0
a) Is the demand for copper elastic or inelastic at the market equilibrium? Explain briefly
b) Assume that the supply and demand curves are linear. Find the equations for supply and demand.
c) Suppose that the quantity of copper supplied at each price falls by 50%. What are the new equilibrium price and quantity?
d) What are the price elasticities of demand and supply at the new equilibrium?
Suppose that the equilibrium price of copper is 5 and the equilibrium quantity of copper is 20. At the market equilibrium, the price elasticity of demand for copper is -0.5, and the price elasticity of supply for copper is 1.0
a) Is the demand for copper elastic or inelastic at the market equilibrium? Explain briefly
b) Assume that the supply and demand curves are linear. Find the equations for supply and demand.
c) Suppose that the quantity of copper supplied at each price falls by 50%. What are the new equilibrium price and quantity?
d) What are the price elasticities of demand and supply at the new equilibrium?
Yusra AneesLv10
28 Sep 2019
