Brazilian rosewood is renowned for its tonal qualities and gorgeous figuring on acoustic guitars. However, Brazilian rosewood is now banned from use in the construction of new guitars. What will likely happen to the price of used Brazilian rosewood guitars over time?
A) The price for used Brazilian rosewood guitars will increase because there will be a smaller supply of Brazilian rosewood guitars on the used market.
B) The price for used Brazilian rosewood guitars will decrease as fewer people decide to sell their guitars.
C) The price of used Brazilian rosewood guitars will increase at first and then decrease, since an increase in demand raises prices causing people to buy less of the product.
D) The price for used Brazilian rosewood guitars will increase as more people try to cash in by selling their increasingly rare guitars.
Correct Answer:
Verified
