Question : Using the original elasticities of demand and supply (i.e.,
Using the original elasticities of demand and supply (i.e.,
Upper E Subscript Upper SESequals=1.5
Upper E Subscript Upper DEDequals=minus0.5),
calculate the effect of a
in copper demand on the price of copper.
Recall that the demand equation is
the supply equation is
the initial equilibrium price is
(dollars per pound), and the initial equilibrium quantity is
(million metric tons per year).