Suppose the equilibrium price of copper

Assignment Help Operation Management

Reference no: EM13994812

Suppose the equilibrium price of copper is P*= $2.00 per pound and the equilibrium quantity of copper is Q*= 12 million metric tons per year (mmt/yr). Furthermore, suppose the slope of the copper demand curve is 3, average consumer income, I, is I=$35 (thousand per year), and the income-elasticity of demand is 1.20.

Using this information, derive the linear demand curve for copper. (Round all calculations to two places.)

Let the demand curve be of the general form Q=a-bP+fI, where a, b, and f are constants.

The equation for the demand curve is:

A. Q=3.65+0.41I.

B. Q=8.35-3.65P+0.41I.

C. Q=8.35+3P-0.41P.

D. Q=3.65-0.41P.

E. Q=3.65-3P+0.41I.

Reference no: EM13994812

Questions Cloud

Exogenous-endogenous variables in typical economic theory : To better understand the role between exogenous and endogenous variables in a typical economic theory diagram, please draw four graphs that show the influence of each of the five following variables on the quantity of Baskin-Robbins Jamoca Almond Fud..

What is the modified duration : What is the Macaulay duration of a 9.6 percent coupon bond with nine years to maturity and a current price of $965.40? What is the modified duration?

What the main assumptions of each theory : What the main assumptions of each theory? What client might work better for each type of psychotherapy? If you were looking for help, which therapist would you go to and why

Problem regarding the discount cash flow analysis : The Optimo Company in operating 10 sugar plantations used large amounts of heavy equipment. Optimo has been approached by a leasing company which has offered to lease Optimo many kinds of equipment. As an example, the leasing company has offered t..

Suppose the equilibrium price of copper : Suppose the equilibrium price of copper is P*= $2.00 per pound and the equilibrium quantity of copper is Q*= 12 million metric tons per year (mmt/yr). Furthermore, suppose the slope of the copper demand curve is 3, average consumer income, I, is I=$3..

Circular flow of economic activity : Circular Flow of Economic Activity. What goes into your decision to work (for households)?

Market effects the gasoline costs : Write a paper about how the supply of oil on the world market effects the gasoline costs that you pay when you put gas into your vehicle. Your paper must reference the activity of oil production in the past several years, as well as the current situa..

How far will the mass have to descend to give the cylinder : We wrap a light, nonstretching cable around a 9.00kg solid cylinder with diameter of 34.0cm . The cylinder rotates with negligible friction about a stationary horizontal axis. We tie the free end of the cable to a 13.0kg block and release the bloc..

Classify physical properties as intensive or extensive : Describe the two types of mixtures. Be able to categorize them and give examples of each.

User Account

All Pages