According to the sources, people of our country started liking sweaters made out of

wool that primarily comes from sheep. Analyze the following situations and examine

the impact on demand and supply of both quantities and price of woolen sweaters.

a) Due to the complexity of raising sheep, the farmers have reduced the number

of sheep by fifty percent. These farmers supply wool to the factories that

manufacture sweaters.

b) Also, according to the sources, wool is an excellent temperature regulator.

Therefore, it is proved to have good health benefits.

c) In the market, there is artificial yarn, used to manufacture switchers similar to

wool, available at lower prices.

d) Of late, there are new and improved technologies are available to manufacture

woolen sweaters with lesser quantities of raw material, leading to a reduced

cost of manufacturing woolen sweaters.