2. Identifying symptoms of the Dutch Disease Consider the economy of Chile, which produces copper and accent furniture that are sold both domestically and internationally. Suppose an increase in foreign income causes an increase in the world demand for copper, whereas the supply does not change. The following graph shows the market for copper in Chile. Adjust the following graph to show the effect of a higher demand for copper on the economy of Chile. 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. (?) The market for copper in Chile O Supply Demand O Supply PRICE (DOLLARS PER TON OF COPPER) Demand QUANTITY (TONS OF COPPER) Activate W Go to Settings As a result of a change in demand for copper, Chile will be able to export _ copper, and the country's revenue willAs a result of a change in demand for copper, Chile will be able to export * copper, and the country's revenue will The following graph shows the foreign exchange market for the Chilean peso. Adjust the following graph to show the effect of a higher demand for copper on the Chilean currency. (?) The market for Chilean peso O Supply Demand O Supply EXCHANGE RATE Demand QUANTITY OF CHILEAN PESOS Based on your changes to the graph, the Chilean peso will The following graph shows the market for accent furniture in Chile. The furniture is sold at the world price, and the market is currently in equilibrium. Assume that labor and capital resources move freely between sectors within the country. Activate Windows Go to Settings to activate Window Adjust the following graph to show how the changes in the Chilean market for copper affect the country's market for furniture.CENGAGE MINDTAP Q Search ews Analysis for Ch 18: Dutch Disease (?) The market for accent furniture in Chile Supply Demand Supply PRICE (DOLLARS PER PIECE OF FURNITURE) Demand QUANTITY (PIECES OF FURNITURE) Suppose that the world demand for copper continues to rise, and the Chilean government keeps investing in the copper industry but also begins to spend some of its copper revenue on the country's nontraded service sector. According to the introductory article, which of the following accurately describe the long-term outcome of the high demand for copper on the market for accent furniture? Check all that apply. O The furniture sector loses its international competitiveness. The furniture sector continues to lose resources due to the resource movement effect. Chile's dependence on copper revenues increases. The furniture sector continues to lose resources due to the spending effect. As the supply for accent furniture adjusts, the workers begin to return to the furniture sector. Activate Windows Go to Settings to activate Prices of raw materials, such as oil, copper, coffee, or soya, vary significantly more than prices of manufactured goods common to lagging industries. In the event of a sudden fall in the world demand for copper, Chile will from the symptoms of the Dutch Disease