Demand and supply in action - Cotton Tops $1 a Pound

“Cotton prices breached the $1-a-pound level for the first time in 15 years as delayed harvests and booming demand in Asia are cutting into supplies, putting clothing makers on edge.”

A good example here from the Wall Street Journal for teaching factors causing the demand and supply curves to shift. In this case the price of cotton has risen as a result of both demand and supply factors.