After months and months of trying to figure this one out, I finally managed to build a fully working example!
So, here is the first version of my Simple Physics script – multiple balls colliding and bouncing off each other.
Preview
I have to give credit to a book called HTML5 Canvas by Steve Fulton & Jeff Fulton (great book!). It was very hard to grasp the law of conservation of momentum without it. Thanks guys!

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