How do they directly affect the demand? How are they currently changing?
2007-03-20 15:54:58 · 3 answers · asked by Anonymous in Social Science ➔ Economics
The price of steel or the demand of steel which is a substitute for lumber.
Also the demand for other complementary building materials will increase or decrease the demand for lumber.
Natural disaster requiring lumber replacement will also have an effect.
Currently there is a shortage of lumber that will soon become a surplus.
2007-03-20 16:01:34 · answer #1 · answered by Santa Barbara 7 · 0⤊ 0⤋
If we decided to build some of our homes out of other materials, that would decrease demand.
I once spent some time in a house built of glass (south face) and car tires filled with sand enclosed in plaster on the inside and earth on the outside. Although in Canada, it cost almost nothing to heat it and was quite cozy. Straw bail is more popular for this kind of thing.
Of course, we might take the money we saved on heating and shop more at Ikea. That would increase demand on lumber.
2007-03-20 16:06:55 · answer #2 · answered by Andrew M 2 · 0⤊ 0⤋
Hi. Demographics. The economy of China has caused a shortage of concrete, power generation equipment, oil (their consumption will be enormous and price will not be the limiting factor), and soon lumber will join the ranks of as absolutely essential material to their economy.
2007-03-20 16:04:48 · answer #3 · answered by Cirric 7 · 0⤊ 0⤋