could you please answer this question?


1 Answer(s)


This is mostly due to inelasticity of demand. Most of the silver, copper etc form mines end up being used for manufacturing processes in industries such as high precision mechanics, electronics etc. Demand from such industries will most likely remain a constant irrespective of the commodity price fluctuations. They will just raise the price of their products and pass on the price to the end consumer. Hence Battle Mountains revenue is not directly proportional to the fall and rise in commodity prices.