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  3. 6 consider the following supply and demand curves for bat...

Question: 6 consider the following supply and demand curves for bat...

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6. Consider the following supply and demand curves for bat teries: where PB is the cost of batteries and Pc is the cost of copper. a) Determine the equilibrium price and quantity for bat- teries (PR and QR) in terms of the variable Poc b) Using comparative statics, discuss how the equilib- rium Pß and QB changes as Pc increases and de creases c) Determine the price elasticity of supply and price elas- ticity of demand as a function of PB a d) Let Pe 2, for what values of PB is the price elastic- itv of demand elastic, unitarv elastic, and inelastic! e) Determine the cross-price elasticity of demand for bat- teries with respect to the price for copper. є08P what can we say about copper and batteries (demand substitutes or complements)?

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