We’re bringing again value concept with our sequence on Value Principle issues with Professor Bryan Cutsinger. You may view the earlier downside and Cutsinger’s resolution right here and right here.
This, our first downside for 2025, is prepared so that you can clear up! Share your proposed options within the Feedback. Professor Cutsinger shall be current within the feedback for the following two weeks, and we’ll once more put up his proposed resolution shortly thereafter. Might the graphs be ever in your favor, and lengthy stay value concept
Query: Suppose that cotton and wool are substitutes. As well as, suppose that the provision of cotton is upward sloping whereas the provision of wool is completely elastic. Consider: A brand new manufacturing method that will increase the provision of cotton will scale back the amount of wool equipped, however there shall be no change within the value of wool and, thus, no change within the demand for cotton.