Thursday, February 5, 2015

Palladium Prices

In 2013, tension between Russia and the West increased over the Ukraine, and traders were concerned about the ability of Russia to supply palladium.  Thus this expectation that supplies would decrease (before they actually decreased) lead to an increase in the price of palladium, which is an unfortunate example of a negative supply price expectation that I talk about in Prin. of Microeconomics.

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