The Market for Copper

This table provides data on the quantity of copper traded and its price:

Between 2020 and 2021, the quantity of copper traded increased from 25 million tons to 25.5 million tons. Over the same period, the price of a ton of copper rose from $6,000 to $10,000.

What is the relationship between green technology and copper?

As climate change rages on, the demand for green technology increases. Because some green technologies, including electric vehicles and wind and solar power stations, use copper electric cables, copper is a factor of production used to produce green technology. As the demand for green technology increases, the demand for copper increases.

How does an increase in the demand for copper explain these data?

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Can another change in demand or supply explain these data?

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Answer the following questions to check your understanding of the story.

What is the relationship between copper and green technology?

Complete the following sentence:

When the ______________, the equilibrium quantity increases, and the equilibrium price falls.

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