How would a decrease in lumber prices influence the home construction market?
A) The demand for newly constructed homes will increase.
B) The demand for newly constructed homes will decrease.
C) The supply of newly constructed homes will increase.
D) The supply of newly constructed homes will decrease.

Question

Quizplus · Accepted Answer

A decrease in lumber prices reduces the cost of building homes, which can lead to an increase in the supply of newly constructed homes as builders are able to produce more at a lower cost.

How Would a Decrease in Lumber Prices Influence the Home