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When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres ...

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When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres ...

When Hurricane Katrina hit the Gulf Coast of the United States in 2005 it destroyed 5,000,000 acres of timber. Given that lumber is timber that has been sawed or split into planks and boards, explain in terms of supply and/or demand how the hurricane impacted each of the following markets (be sure to note the expected resulting impact on equilibrium price and quantity):

a.	Domestic lumber
b.	Imported lumber
c.	New home construction

Textbook

Economics

Edition: 12^th

Author: Arnold

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