. Projections of the demand for national forest stumpage by region, 1980-2030. Forests and forestry Economic aspects United States; Forest products United States. Qa Qb Qc Quantity/Year The demand for stumpage is derived from the demand for wood products (Gregory 1972, Haynes 1977). There- fore, the shape and position of the regional demand curve for stumpage is dependent not only on the supply of stumpage from other sources and the supply of other manufacturing inputs for the wood products sector, but also on the shape of the demand curve for wood products. Figure 2 shows a graphical derivati
. Projections of the demand for national forest stumpage by region, 1980-2030. Forests and forestry Economic aspects United States; Forest products United States. Qa Qb Qc Quantity/Year The demand for stumpage is derived from the demand for wood products (Gregory 1972, Haynes 1977). There- fore, the shape and position of the regional demand curve for stumpage is dependent not only on the supply of stumpage from other sources and the supply of other manufacturing inputs for the wood products sector, but also on the shape of the demand curve for wood products. Figure 2 shows a graphical derivation of the demand for stumpage assuming a fixed coeffi- cient production demand for wood products is shown as Dp and the supply curve for all factors of production other than stumpage is shown as Sf. The derived demand is the vertical difference between Dp and Sf and represents the maximum amount that could be paid for each quantity of stumpage while still compensating all other factors of production. When we speak of a shift in demand, we are referring to a change in the position of the demand curve. Such a shift is shown as the change from to D2 in figure 3. An example of such a shift would be the change in demand which we project through time ( D, might correspond to 1980 and D2 to 1990). A change in quantity demanded, however, corresponds to a movement along a demand curve. 2A fixed coefficient production function states that inputs are compined in fixed proportions to produce quantities of output. Figure 3. —Demand, supply, and market price determination. Supply.—Supply is the relationship between price and the quantity that sellers would place on the market. Supply curves are, in general, upward sloping—the higher the price, the greater the quantity sellers would be willing to provide. Curve S, in figure 3 is an example of a supply curve. As with demand, supply curves apply to a stated interval of time. Shifts in a supply curve, as from St to S2 in
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