We’re bringing again value concept with our collection on Value Idea issues with Professor Bryan Cutsinger. You possibly can 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 might be current within the feedback for the subsequent two weeks, and we’ll once more submit his proposed resolution shortly thereafter. Could the graphs be ever in your favor, and lengthy reside 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 provided, however there might be no change within the value of wool and, thus, no change within the demand for cotton.
