We’re bringing again worth principle with our collection on Worth Principle issues with Professor Bryan Cutsinger. You possibly can view the earlier drawback and Cutsinger’s answer right here and right here.
This, our first drawback for 2025, is prepared so that you can remedy! 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 submit his proposed answer shortly thereafter. Might the graphs be ever in your favor, and lengthy dwell worth principle
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 approach that will increase the provision of cotton will scale back the amount of wool equipped, however there shall be no change within the worth of wool and, thus, no change within the demand for cotton.
