Around 1990, Congress restricted the amount of old growth forest that could be harvested for timber in order to protect the spotted owl. Lumberjacks and sawmill workers protested the restriction whereas owners of timber companies remained silent and did not protest that much.

a) Due to the restriction on land use, what happened to the price and the quantity of timber sold? Show on a supply and demand graph. b) Assume that the demand for lumber is inelastic (at least in the short run). Explain what happened to revenues for timber companies? c) After the decrease in the amount of forest that could be cut, what happened to the number of lumberjacks hired and to the wages which they received? Using a supply and demand graph for the market for lumberjacks, show what happened to wages and employment for lumberjacks. Briefly explain in words what happened