. Projections of the demand for national forest stumpage by region, 1980-2030. Forests and forestry Economic aspects United States; Forest products United States. Price is determined by the intersection of demand and total supply. If the National Forest harvest level is S1s price is P„ if the National Forest harvest level is S2, price is P2, and if the National Forest harvest level is S3, price is P3. The effect of changing National Forest harvest levels is to shift the total supply curve. The locus of points from the intersection of price and alternative National Forest harvest levels is grap
. Projections of the demand for national forest stumpage by region, 1980-2030. Forests and forestry Economic aspects United States; Forest products United States. Price is determined by the intersection of demand and total supply. If the National Forest harvest level is S1s price is P„ if the National Forest harvest level is S2, price is P2, and if the National Forest harvest level is S3, price is P3. The effect of changing National Forest harvest levels is to shift the total supply curve. The locus of points from the intersection of price and alternative National Forest harvest levels is graphically depicted as P0CE and is the regional demand for National Forest The demand for National Forest timber is more elastic than the regional derived demand for timber from all ownerships. This elasticity depends on the elasticity, or slope, of the supply relationships for other owner- ships. An increase, for example, in the National Forest harvest level shifts total supply to the right, leading to a lower price and a simultaneous reduction in quantity. Reductions in the quantity supplied from other ownerships offset the increase in National Forest harvest if the supply curve for other ownerships is not totally inelastic. With the reductions in the quantity supplied from other ownerships, the change in the total quantity supplied in the region is less than the change in the quantity offered for sale on the National Forests, and the demand for stumpage on the National Forests is more elastic than the derived demand for stumpage on all ownerships. "The kink that occurs are point C is of limited significance since in actual practice it is unlikely to be observed. It represents the point where National Forest harvest levels are high enough to lower prices to such an extent that private supply is zero. The pattern of events traced out in the preceding paragraph depends on the assumption that National Forest timber supply is perfectly inelastic. National Forest timb
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