Lead, an input in the production of ammunition, increased in price from $0.60/lb in 2006 to over $1.50/lb in 2007. A possible explanation for this is that demand has increased faster than supply has increased.

Question

Quizplus · Accepted Answer

The increase in price of lead indicates a shift in the supply and demand curve for lead, where demand has outpaced supply resulting in higher prices.

Lead, an Input in the Production of Ammunition, Increased in Price