Problem
Consider the market for hamburger, and draw rep- resentative supply and demand curves.
1. Assume that hamburger is an inferior good. Suppose that consumer incomes fall, and at the same time, an improvement in technology low- ers production costs. Show this on your graph. If you have no other information, what can you say about the change in equilibrium price and quantity?
2. Now suppose that you have the additional in- formation that the change in consumer incomes has been relatively small, while the reduction in production costs has been relatively large. How would this change your answer to (a)?
Using the facts in the opening case, the discussion in the chapter, and demand and supply curves, show the impacts of the events in the case on the price and quantity of copper. Clearly distinguish between changes in demand and supply and changes in the quantity demanded and the quantity supplied.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.