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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

and

Upper E Subscript Upper DEDequals=minus0.5),

calculate the effect of a

3030-percent

decreasedecrease

in copper demand on the price of copper.

Recall that the demand equation is

Qequals=27minus3P,

the supply equation is

Qequals=minus9plus+9P,

the initial equilibrium price is

P*equals=$3.00

(dollars per pound), and the initial equilibrium quantity is

Q*equals=18

(million metric tons per year).