When All birds introduced athletic shoes with uppers made from merino wool, it helped increase the popularity of this type of wool, which is softer than other wools. A news article noted that, “Brands from Adidas to Lululemon and Under Armour are selling wool apparel, touting the fiber’s soft feel and odor-resisting properties.” Most merino wool is harvested from sheep raised in Australia and New Zealand. The article noted that the sheep population in these countries has been declining because sheep farmers have been converting to dairy farming or raising wheat and other crops.

a. Can we use this information to be certain whether the equilibrium price of merino wool has increased or decreased? Use a demand and supply graph showing the market for merino wool to illustrate your answer.
b. Can we use this information to be certain whether the equilibrium quantity of merino wool has increased or decreased? Use a demand and supply graph showing the market for merino wool to illustrate your answer.