Explain, using the price system, how a pencil is made.

no more than 500 words please!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Your topic is paired with an external resource for you to consider, draw on, and respond to as you compose your thoughts on your topic.

Explain, using the price system, how a pencil is made. After doing so, imagine you run a factory that makes pencils, assume that there is a collapse in the graphite mine you buy your graphite from. Explain, using the price system, how you react.

http://www.econtalk.org/archives/2008/08/roberts_on_the_1.html (mainly approx. 22:35-34:23)

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