Firewood prices in places from northern California to Boston and suburban New Jersey have remained steady even though the supply of firewood has been diminished by environmental restrictions on cutting. The Wall Street Journal reports that sales of gas fireplaces are outpacing sales of wood-burning hearths and that “people are burning less and less wood.” Use supply and demand analysis to show why firewood prices are not rising while the quantity of firewood burned is declining.
Firewood prices in places from northern California to Boston and suburban New Jersey have remained steady even though the supply of firewood has been diminished by environmental restrictions on cutting. The Wall Street Journal reports that sales of gas fireplaces are outpacing sales of wood-burning hearths and that “people are burning less and less wood.” Use supply and demand analysis to show why firewood prices are not rising while the quantity of firewood burned is declining.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Firewood prices in places from northern California to Boston and suburban New Jersey have remained steady even though the supply of firewood has been diminished by environmental restrictions on cutting. The Wall Street Journal reports that sales of gas fireplaces are outpacing sales of wood-burning hearths and that “people are burning less and less wood.” Use supply and demand analysis to show why firewood prices are not rising while the quantity of firewood burned is declining.
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