Author Question: If political unrest abroad substantially reduces the supply of copper to the United States, the ... (Read 85 times)

Zoey63294 · **on:** Jun 29, 2018

If political unrest abroad substantially reduces the supply of copper to the United States, the price of copper will rise by a larger amount

A) the more elastic the demand for copper.
B) the more inelastic the demand for copper.
C) the more elastic the supply of copper.
D) the more inelastic the supply of copper.

Question 2

There are 9 firms in an industry with market shares in the table above. Calculate the HHI for the industry. What kind of market does this operate in and why?

What will be an ideal response?

nhea · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

The HHI equals 202 + 202 + 152 + 102 + 102 + 82 + 72 + 52 + 52 = 1388. With this HHI, the concentration ratio is low and so the market is monopolistic competition.