British Mill Owners' Shift to Indian Cotton and Consequent Price Rise
As an alternative to the scarce and expensive US cotton, British mill owners began sourcing from India, which caused a substantial increase in demand for Indian cotton. This created excess demand in the Indian market, allowing sellers to raise their prices significantly until the price of Indian cotton was nearly equal to that of US cotton.
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CORE Econ
Introduction to Microeconomics Course
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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British Mill Owners' Shift to Indian Cotton and Consequent Price Rise
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