In response to the demands of environmentalists, large sections of timberlands are put off limits to logging.What effect will this have on the aggregate supply curve?
A)Shift it outward.
B)Shift it inward.
C)Move the economy up along the curve.
D)Move the economy down along the curve.

Question

Quizplus · Accepted Answer

Putting large sections of timberlands off limits to logging will decrease the availability of raw materials for the timber industry, which will increase the cost of production and decrease the quantity supplied. Therefore, the aggregate supply curve will shift inward.

In Response to the Demands of Environmentalists, Large Sections of Timberlands