Question: The table below presents the average monthly demand and supply of 4 ' 8 ' sheets of plywood from a typical home building supply store.
The table below presents the average monthly demand and supply of sheets of plywood from a typical home building supply store. In any month when coastal states such as Florida are threatened by hurricanes, the typical monthly demand for plywood increases by sheets at every price. Imagine Florida passes a "price gouging" law that prevents home building supply stores from raising the price of plywood when hurricanes threaten.
Market for Plywood
tabletablePricedollarstableInitialQuantity ofPlywoodDemandedsheetstableInitialQuantity ofPlywoodSuppliedsheetstableNew Quantityof PlywoodDemandedsheets$
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