II Wooden Bats Versus Metal Bats The supply of wooden bats is shown as Sw on the following graph. It has a steeper slope than the supply of metal bats, Sm, reflecting the fact that it is easier to produce additional metal bats than additional wooden bats.

1. Assume Dm is the demand for metal bats. Suppose baseball purists are willing to pay more for a “sweet crack” sound than for a dull, metallic “ping” when they connect with a fastball. Draw a demand curve for wooden bats and label it Dw.

2. What are the consequences for the relative prices of wooden and metal bats?

Transcribed Image Text:

Price Sw Sm Quantity Dm