1. Explain whether the following events will lead to a change in the demand for wool or a change in the quantity of wool demanded (in the case of a change in demand indicate whether it is an increase in demand or a decrease in demand):
2. The price of wool rises:
3. A close substitute for wool is invented:
4. Extremely cold weather forces more consumers to purchase woolen sweaters:
5. When a lumber mill makes logs from trees it also produces sawdust, which is used to make plywood.
6. Are logs and sawdust complements in production or substitutes in production? Explain:
7. Explain how a rise in the price of sawdust influences the supply of logs:
8. Explain how a rise in the price of sawdust influences the supply of plywood: