In Recent Years, the World Demand Curve for Copper Shifted

question 76

Multiple Choice

In recent years, the world demand curve for copper shifted rightward due to continued economic growth in China and other emerging economies. Also, the costs of extracting the copper increased due to higher energy prices. As a result, we observed:

• A) higher equilibrium copper prices and unambiguously lower quantities.
• B) higher equilibrium copper prices and unambiguously higher quantities.
• C) higher equilibrium copper prices and either higher or lower quantities.
• D) lower equilibrium copper prices and either higher or lower quantities.

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Definitions:

Inelastic

Describes a situation in demand or supply where the quantity demanded or supplied changes by a smaller percentage than the changes in price.

Illinois Commerce Commission

A regulatory agency in Illinois responsible for overseeing utility services, including electricity and gas, to ensure fair practices and rates for consumers.

Commuter Rates

The fares or fees charged for transportation services, especially for those traveling to and from work.

Price Inelastic

This refers to a situation where the quantity demanded or supplied of a good or service changes minimally in response to changes in its price.