1. Using the given demand and supply equations, calculate the effect of a 35 -percent increase in copper demand on the price of copper. Note: use the initial equilibrium values for P * (= $3.00) and Q * ( = 18 million metric tons) when calculating the changes below. As a result of this change in demand, the price of copper will

The new price of copper will be 3.48 dollar per metric ton

Missing inf:

the demand equation is Q = 27 - 3P

the supply equation is Q = - 9 + 9P

Explanation:

If demand increase by 35:

Qd = (27-3P) x 1.35

Qd = 36.45 - 4.05P

Now, we solve for the new equilibrium Price will ve:

36.45 - 4.05P = - 9 + 9P

36.45 + 9 = 9P + 4.05P

45.45 = 13.05P

P = 3.48275862 = $3.48