(a)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):

(i)The price of wool rises

(ii)A close substitute for wool is invented

(iii)Extremely cold weather forces more consumers to purchase woolen sweaters

(b)When a lumber mill makes logs from trees it also produces sawdust, which is used to make plywood.

(i)Are logs and sawdust complements in production or substitutes in production? Explain.

(ii)Explain how a rise in the price of sawdust influences the supply of logs.

(iii)Explain how a rise in the price of sawdust influences the supply of plywood