Landlords have been known to place bricks in the water tanks of toilets to econo

Question

Landlords have been known to place bricks in the water tanks of toilets to economize water when price rises...Therefore, bricks are substitutes for water in this context. True or False, explain.

I feel like it is false because bricks are not a good in this context...I am really confused.

Also, I need help clarifying this statement: I understand the first part but not the bolded...

If half of our forests were destroyed in a fire, the value of the remaining lumber would be greater than the value of all lumber in the country before the fire. This absurdity - that the whole is worth less than the half - shows that values are distorted in a market economy.

Explanation / Answer

Water and brick are goods but not substitute to each other. The consumption of water can’t be replaced by brick or vice versa. Therefore, these are not substitute goods.

The answer is false.

The whole lumbers of the country were extracted from the forest when the forest had no threat. It reflected on market economy, since the lumbers were demanded in the market normally. Once the threat like fire occurs in the forest, the supply of lumbers goes down. It immediately reflects in the market economy with higher value, since its demand increases. Therefore, values are distorted in the market economy through demand and supply effect.

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