When large areas of the US Pacific North-West were protected from logging in 1990 (to conserve spotted owl habitat), this is likely to have caused the equilibrium price of logs to increase and the equilibrium quantity of logs sold to decrease.

Question

Quizplus · Accepted Answer

The decrease in supply due to the protection of the logging areas would lead to an increase in the equilibrium price and a decrease in the equilibrium quantity of logs sold.

When Large Areas of the US Pacific North-West Were Protected