If the wood used to produce houses rises in price, then the________ houses ________.

Question

Quizplus · Accepted Answer

If the cost of producing houses increases due to higher wood prices, then the supply of houses will decrease because it will be more expensive for builders to produce them. As a result, the cost of the available houses will likely go up and therefore the demand for houses will decrease because people will be less likely to buy them at a higher price.

If the Wood Used to Produce Houses Rises in Price