Lumber and brick are substitutes in home construction. Consider the market for bricks depicted in the graph. Suppose the price of lumber increases due to new regulations for the logging industry. Shift one or both curves in the graph to illustrate the impact this change will have on the market for bricks. Equilibrium price is now $ Equilibrium quantity is now 00 260 240 220 200 180 160 140 E 120 100 80 60 40 20 The Brick Market supply demand 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Quantity

Lumber and brick are substitutes in home construction. Consider the market for bricks depicted in the graph. Suppose the price of lumber increases due to new regulations for the logging industry. Shift one or both curves in the graph to illustrate the impact this change will have on the market for bricks. Equilibrium price is now $ Equilibrium quantity is now 00 260 240 220 200 180 160 140 E 120 100 80 60 40 20 The Brick Market supply demand 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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