Early in 2011, the world price of copper reached a record high of over $10,000 per ton. Two events appeared to lie behind this high price. First, China’s rapid economic growth and the massive building of infrastructure. Second, an explosion closed a major Chilean port used for shipping a substantial fraction of the world’s copper output. Use a demand-and-supply diagram to illustrate these events in the copper market and explain how each event shifts either the demand curve or the supply curve.

Early in 2011, the world price of copper reached a record high of over $10,000 per ton. Two events appeared to lie behind this high price. First, China’s rapid economic growth and the massive building of infrastructure. Second, an explosion closed a major Chilean port used for shipping a substantial fraction of the world’s copper output. Use a demand-and-supply diagram to illustrate these events in the copper market and explain how each event shifts either the demand curve or the supply curve.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 6SQP

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