In example 2.3, the textbook shows a surprising trend in the relationship between the price of copper and the consumption of copper over time. From 1880 to 2016, which of the following ocurred?
A) The consumption of copper remained virtually unchanged, yet the price increases substantially.
B) The price of copper reflected precisely the market prediction that as consumption rose steadily over time, the price of copper rose at almost exactly the same rate.
C) The price of copper remained virtually unchanged while the consumption of copper rose exponentially.
D) While the price of copper rose substantially, the consumption of copper actually declined.

Question

Quizplus · Accepted Answer

The correct answer is C because it highlights a common economic phenomenon where the consumption of a commodity like copper can increase significantly over time due to technological advancements, increased demand, and other factors, while the price remains relatively stable due to improvements in mining technology, recycling, and efficient market adjustments.

In Example 2