2 A Long December This winter is hotter than normal, so people want fewer wool scarves than before...however, a new breakthrough in genetic engineering caused many sheep to grow hair (used to make wool) much faster this year. Show what happens in the market for wool. In the left graph, show a big change in D and small changein S. In the right graph, show a small change in D and a big change in S. Please indicate what happens toprice and quantity relative to the initial equilibrium. Either price or quantity will be ambiguous in eachinstance, so each question will have 2 possible graphs. Draw them both. BE SURE TO LABEL axes andcurves.P. QP, QWhich change is ambiguous, price or quantity? What happens to the other one?(flip the pape
2 A Long December This winter is hotter than normal, so people want fewer wool scarves than before...however, a new breakthrough in genetic engineering caused many sheep to grow hair (used to make wool) much faster this year. Show what happens in the market for wool. In the left graph, show a big change in D and small changein S. In the right graph, show a small change in D and a big change in S. Please indicate what happens toprice and quantity relative to the initial equilibrium. Either price or quantity will be ambiguous in eachinstance, so each question will have 2 possible graphs. Draw them both. BE SURE TO LABEL axes andcurves.P. QP, QWhich change is ambiguous, price or quantity? What happens to the other one?(flip the pape
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