Data Response

1.
     a. Demand : The quantity of a good or service consumers are willing and are able to purchase at a given price in a given time period.

      b. Economic Growth:  The measure of national income, which is the value of all the goods and services produced in an economy in a given time period, usually one year.

2.  An increment in the copper price could be the outcome of an increase in the income and economic growth in China. This lead to excess demand in China  due to the demand curve shifting to the right.


After a temporary phase of excess demand, the price had to increase to reach the equilibrium again.

3. The increase in prices of washing machines, or any electric material, due to the copper wiring. The increase in production prices will lead to a shift to the left of the supply curve.


The electric wired products' prices will increase with time, with the period of excess demand, the equilibrium price moved to the left of the demand curve, in other words, it increased.

4.  Over a couple of months, the equilibrium price of copper, will stabilize, and the period of excess demand will finish. On the producer's side, the demand will decrease, but on the consumer's side, the demand increases, which ends up in an equilibrium. The demand curve moves to the right, because of the increase in national income, and the supply cure moves to the left, due to the increased price of raw materials, like copper. The equilibrium price, will increase, as seen on the graph below:




Interestingly, the equilibrium price goes straight up, but the quantities stay constant, the only change is the equilibrium price.