Consider the market for wool.

According to the Australian Wool Innovation, a severe drought in Australia this year has contributed to the lowest level of wool production in 50 years.

Analysis: (true or false)

The drought has decreased the supply of wool products and the price of wool products will rise. Demand for wool products will decrease.

or this you part, you will be asked to explain the validity of a question and defend it using tools of demand and supply as being either true or false. Be as articulate as possible because you need to convey your mastery of chapter 3.