Demand and supply?

Question

I am asked a question for what will happen to the market for wooden row boats. If Antartica melts, will the supply or demand for row boats increase or decrease? Then if giant beetles eat all of the trees in Canada how will that effect the supply or demand?

Answer 1

Haha, that's a funny question that you are asked.  You have to make some assumptions about it too.

First if melting of Antartica makes people want to buy row boats for whatever reason then ceteris paribus, demand will shift out (to the right in a graph - so demand increases).  As the market adjusts to the new demand you will move along the supply curve for an increase in supply and price.

Second assuming row boats are produced in and only in Canada, ceteris paribus supply will shift in (up in a graph - so supply decreases).  As the market adjusts you will move along the demand curve for a decrease in demand and an increase in price.

Answer 2

If Antartica melted demand would increase....and if giant beetles ate all the trees and the wood for the boats come from Canada then supply would decrease.

Answer 3

If antartica melts demand and supply of row boats wont change because people dont go to antartica and coz dey dont go dey wont need extra row boats... moreover there are no row boat sellers.. no sellers for that matter in antartica.

If giant beetles eat all the trees in canada ,the supply of row boat will decrease.demand wont be effected as people wont care abt d trees...they want wat dey need..dats it..

Answer 4

Well, if the melting of Antarctica means that there is more ocean to navigate, one can only assume that individuals that before did not want to sail because of the issue of constricted ocean will now sail. Thus, the demand should increase. Also, the melting of the Antarctic ice should increase the amount of water surface on Earth, increasing the demand for boats of all kinds. Now if the boats in question use wood and something begins to destroy wood in areas of the world that produce wood the supply would decrease until the situation was taken care of or until another region of the world were to begin to harvest wood that they didn't before. This harvesting of wood by areas that did not harvest before might be triggered by a rise in the price of wood due to a lowering in supply wood.