Price volatility case study - copper
The video clip highlights the problems facing the copper mining industry in Zambia from falling prices of copper and the country's overdependence on copper production.
Reflect upon the following questions whilst you are watching the video. You might want to make some brief outline notes during and after the video.
- Explain the importance of copper to the economy of Zambia.
- Using supply and demand curves, explain why the price of copper has fallen.
- Describe the effect of a fall in the price of copper on copper production.
- Examine how the fall in the price of copper has affected the lives of copper miners.
- Describe how the Zambian government responded to the fall in copper prices.
- Copper wire is used to transmit electricity. Using supply and demand diagrams explain the impact of improved glass fibre technology, and other materials for conducting electricity, on the market for copper.