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 ________.

Question

Quizplus · Accepted Answer

When the price of a good decreases, individual suppliers (ranchers, in this case) are less willing to supply the good, leading to a decrease in the quantity supplied both by individual ranchers and in the market as a whole.

Recall the Application About the Decrease in the Price of Wool