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Tuesday, June 3, 2008
Two more exam questions...
First, read The Economics of Sawdust. Then use supply and demand diagrams to explain a) how the downturn in housing construction could lead to higher prices of sawdust and b) how higher sawdust prices could lead to higher prices of milk.
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Comments that contribute to the discussion are always welcome! Please note that spammy comments whose only purpose seems to be to direct traffic to a commercial site will be deleted.