Illustrate effects on equilibrium market price

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Use a supply and demand diagram to illustrate effects on equilibrium market price and quantity of firewood used for household heating. Clearly explain any changes depicted in your diagram. State any assumptions you are making as part of the analysis. Use one diagram to describe both: (a) A bushfire destroys large reserves of firewood; and (b) An increase in the price of electricity relative to other forms of household heating.

Reference no: EM131095898

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