If the price of copper rises, which of the following may occur?

A. The quantity of copper supplied falls.

B. The profits of copper producers increase.

C. Thefts of copper wire decline.

D. The government increases the copper content of pennies.

Question

Bryan

History

3 May, 23:00

If the price of copper rises, which of the following may occur?

A. The quantity of copper supplied falls.

B. The profits of copper producers increase.

C. Thefts of copper wire decline.

D. The government increases the copper content of pennies.

+3

Answers (1)

Know the Answer?

Rubber · Answer 1

The correct option is B, the profits of copper produces increase

Explanation:

Assuming copper is price inelastic, meaning the rise in price would not impact the quantity demanded significantly, the revenue of the suppliers increase and as a result the bottom-line (profits) recorded by the suppliers increase.

A price increase cannot bring about reduction in quantity supplied ads increase in price is an incentive to supply more, hence option A is wrong.

Option C is totally out of context as well as option D

The government is not the one producing the copper let alone increase the content of the copper

If the price of copper rises, which of the following may occur?A. The quantity of copper supplied falls.B. The profits of copper producers increase.C. Thefts of copper wire decline.D. The government increases the copper content of pennies.

If the price of copper rises, which of the following may occur?

A. The quantity of copper supplied falls.

B. The profits of copper producers increase.

C. Thefts of copper wire decline.

D. The government increases the copper content of pennies.