Recall the Application About the Decrease in the Price of Wool

question 163

Multiple Choice

Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s) . In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.
-Recall the Application. As the world price of wool decreased, the quantity of wool supplied by individual ranchers would ________, and the quantity supplied in the whole market would ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

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Definitions:

Seniors

Older adults, typically those aged 65 and above, who may qualify for certain benefits and considerations due to their age.

Students

Individuals engaged in the process of learning, typically within an educational institution such as a school or university.

Elastic Demand

Characterizes a market situation where demand for a product significantly changes in response to a change in the product's price.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to utilize resources in one way instead of another.