Suppose there are a series of forest fires that affect the lumber industry while,at the same time,consumers demand more wooden furniture.The wooden furniture market would experience

Question

Quizplus · Accepted Answer

The forest fires will likely reduce the supply of lumber, leading to an increase in the cost of production for wooden furniture. This will cause an increase in price. However, the change in quantity demanded by consumers is indeterminate and will depend on how much the increase in price affects demand.

Suppose There Are a Series of Forest Fires That Affect