Asked by

kayla neves
on Nov 25, 2024

verifed

Verified

If the lumber companies are required to internalize the negative externalities of deforestation, then we should expect the equilibrium price of wooden furniture to decrease.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's market price.

Equilibrium Price

The price in the market where the amount of products available matches the amount of products wanted by consumers.

Deforestation

The clearing or thinning of forests by humans to make the land available for other uses, such as agriculture, logging, or mining, often leading to environmental concerns.

  • Comprehend the economic consequences of environmental regulations and the reduction of pollution tactics.
verifed

Verified Answer

SP
Shikha PatelNov 28, 2024
Final Answer:
Get Full Answer