Discusses issues related to material markets, price fluctuations, shortages and stockpiling. The following topics are examined: (1) the behavior of the price of exhaustible materials; (2) the effect of long-term contracts on materials markets; (3) the costs of price instability; (4) price stability that is provided by the market; (5) the cost of excessive price instability; (6) the cost of a government stockpiling program; (7) depending on low-cost foreign materials vs. developing more expensive substitutes and domestic resources; (8) the nationalization of mineral investments. (Prepared for the National Commission on Supplies and Shortages.) 21 pp. Bibliog. (AR)
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