Unstable export markets Sometimes the exports of developing nations are concentrated in only one or a few primary products. For example, according to World Bank data, copper constitutes 56% of Zambia's total exports. Therefore, changes in demand or supply of copper can have significant effects on the health of Zambia's economy. The current world price of copper is $5.00 per kilogram, but there is uncertainty about the shape of the demand and supply curves. The following graphs (scenario A and scenario B) show two possibilities for demand and supply in the market for copper Suppose that a new jewelry fad causes a sudden increase in the global demand for copper On the following graph, shift the demand or supply curve of scenario A to show what happens in the market for copper as a result of this event. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther Scenario A 9 Demand 8 Supply PRICE (Dollars) Supply Det and 34. QUANTITY (Kilograms of copper) On the following graph, shift the demand or supply curve of scenario B in the same direction that you did in scenario A ? Scenario B 9 . Supply PRICE (Dollar) Demand Supply Demand 16 " QUANTITY (lograms of copper) In the following table, enter the new price for copper under each scenario as a result of the new jewelry fad. (Hint: Select the black point (plus symbol) representing the new equilibrium on the previous graphs to see its coordinates) Original Price New Price Scenario (Dollars per kilogram) (Dallars per kilogram) 5.00 5.00 True or False Because the supply of copper is less elastic in scenario B versus scenano A, changes in demand cause less volatile price fluctuations for Zambia under scenario B True False