Using the original elasticities of demand and supply? (i.e.,

Upper E Subscript Upper SESequals=1.5

and

Upper E Subscript Upper DEDequals=minus-?0.5),

calculate the effect of a

3030?-percent

decreasedecrease

in copper demand on the price of copper.

Recall that the demand equation is

Qequals=27minus-?3P,

the supply equation is

Qequals=minus-9plus+?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).

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