Question: The A index is a proxy for the world price of cotton. From January to October of 2010, the price reflected by the A index

The "A" index is a proxy for the world price of cotton. From January to October of 2010, the price reflected by the "A" index increased about 80%.

a. Provide two separate explanations for this price increase using shifts in supply or demand.

b. What one piece of information would allow you to decide which of the two is a better explanation?

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