420 



TIMBER RESOURCES FOR AMERICA'S FUTURE 



probably been the major factor responsible for 

 the decrease of relative consumption. The 

 1948-52 average real price of lumber was 93.8 

 percent above 1926, representing a 2.8 percent 

 average increase per year. The corresponding 

 decrease in relative consumption amounted to 

 36.7 percent, or 1.93 percent per year. The ratio 



of real-price increase to relative-consumption 

 decrease for the period was thus approximately 

 2 to 1. In other words, a 2-percent increase in 

 real price has been associated with a 1 -percent 

 decrease in relative consumption (fig. 119). 



This ratio, of course, does not mean that price 

 has affected consumption to just this extent. It 



200 

 190 







Note: This chart is plotted on 





• logarithmic scales. Equal distances 





180 

 170 

 160 



vertically and horizontally denote 





• •07 equal percentage change. 





]50 



\\ . -06 





140 







o 130 







o 



. * '22 





II ^^° 



•16 • • • , 





ii 110 



. • 23 





2: 100 



•18.. 

 17 





1 90 



• 





1 — 







i 80 







=3 



'50 





g 70 



^3 . . • LOWER PROJECTION 





<<— » 



t • •• • * 





> 60 



'32 . • OF LUMBER DEMAND 





1 — 



/IN 1975 





1 



U-J 



•37 / 





^ 50 



/^ 





u. 







O 







X 







I_LJ 



i 40 



Numerals '06, '07, '16, '17, etc, indicate 



I 







years in which either price or consumption 4 

 was farthest out of line with the general / 





30 



, , , . ,. , ,. ■ . LOWER PROJECTION 

 trend of price-consumption relationship. 





OF LUMBER DEMAND 







IN 2000 





20 

 5 







60 70 80 90 100110120 150 200 250 300 400 500 600 





INDEX OF REAL PRICE: 1926 = 100 



Figure 119 



