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↓ In Example 2.8, we discussed the recent increase in world demand for copper, due in part to China's rising consumption. Recall that the demand equation is Q = 27-3P, the supply equation is Q=-9+9P, the initial equilibrium price is P* $3.00 (dollars per pound), and the initial equilibrium quantity is Q* = 18 (million metric tons per year). 1. Using the given demand and supply equations, calculate the effect of a 35-percent increase in copper demand on the lit price of copper. Note: use the initial equilibrium values for P* (= $3.00) and Q* (= 18 million metric tons) when calculating the changes below. As a result of this change in demand, the price of copper will decimal places.) and the equilibrium quantity will by by $(Enter your response rounded to two million metric tons per year. (Enter your response rounded to two decimal places.) 2. Now suppose as weil that the U.S. production of copper declined between 2000 and 2003. Calculate the effect of both a 35-percent increase in copper demand (as you did above) and a 40-percent decline in copper supply. As a result of both of these changes, the equilibrium price of copper will rounded to two decimal places.) and the equilibrium quantity of copper will year. (Enter your response rounded to two decimal places.) by $ (Enter your response by million metric tons per SV

↓ In Example 2.8, we discussed the recent increase in world demand for copper, due in part to China's rising consumption. Recall that the demand equation is Q = 27-3P, the supply equation is Q=-9+9P, the initial equilibrium price is P* $3.00 (dollars per pound), and the initial equilibrium quantity is Q* = 18 (million metric tons per year). 1. Using the given demand and supply equations, calculate the effect of a 35-percent increase in copper demand on the lit price of copper. Note: use the initial equilibrium values for P* (= $3.00) and Q* (= 18 million metric tons) when calculating the changes below. As a result of this change in demand, the price of copper will decimal places.) and the equilibrium quantity will by by $(Enter your response rounded to two million metric tons per year. (Enter your response rounded to two decimal places.) 2. Now suppose as weil that the U.S. production of copper declined between 2000 and 2003. Calculate the effect of both a 35-percent increase in copper demand (as you did above) and a 40-percent decline in copper supply. As a result of both of these changes, the equilibrium price of copper will rounded to two decimal places.) and the equilibrium quantity of copper will year. (Enter your response rounded to two decimal places.) by $ (Enter your response by million metric tons per SV

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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↓ In Example 2.8, we discussed the recent increase in world demand for copper, due in part to China's rising consumption. Recall that the demand equation is Q = 27-3P, the supply equation is Q=-9+9P, the initial equilibrium price is P* $3.00 (dollars per pound), and the initial equilibrium quantity is Q* = 18 (million metric tons per year). 1. Using the given demand and supply equations, calculate the effect of a 35-percent increase in copper demand on the lit price of copper. Note: use the initial equilibrium values for P* (= $3.00) and Q* (= 18 million metric tons) when calculating the changes below. As a result of this change in demand, the price of copper will decimal places.) and the equilibrium quantity will by by $(Enter your response rounded to two million metric tons per year. (Enter your response rounded to two decimal places.) 2. Now suppose as weil that the U.S. production of copper declined between 2000 and 2003. Calculate the effect of both a 35-percent increase in copper demand (as you did above) and a 40-percent decline in copper supply. As a result of both of these changes, the equilibrium price of copper will rounded to two decimal places.) and the equilibrium quantity of copper will year. (Enter your response rounded to two decimal places.) by $ (Enter your response by million metric tons per SV
Transcribed Image Text:↓ In Example 2.8, we discussed the recent increase in world demand for copper, due in part to China's rising consumption. Recall that the demand equation is Q = 27-3P, the supply equation is Q=-9+9P, the initial equilibrium price is P* $3.00 (dollars per pound), and the initial equilibrium quantity is Q* = 18 (million metric tons per year). 1. Using the given demand and supply equations, calculate the effect of a 35-percent increase in copper demand on the lit price of copper. Note: use the initial equilibrium values for P* (= $3.00) and Q* (= 18 million metric tons) when calculating the changes below. As a result of this change in demand, the price of copper will decimal places.) and the equilibrium quantity will by by $(Enter your response rounded to two million metric tons per year. (Enter your response rounded to two decimal places.) 2. Now suppose as weil that the U.S. production of copper declined between 2000 and 2003. Calculate the effect of both a 35-percent increase in copper demand (as you did above) and a 40-percent decline in copper supply. As a result of both of these changes, the equilibrium price of copper will rounded to two decimal places.) and the equilibrium quantity of copper will year. (Enter your response rounded to two decimal places.) by $ (Enter your response by million metric tons per SV
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