Using the supply and demand model, what is the best way to show the effects on the plywood market of households preparing for a hurricane? (Note: people use plywood to board up their homes to protect them from damage from a hurricane.)
A) Supply curve shifted to the right, demand curve did not shift.
B) Demand curve shifted to the right, supply curve did not shift.
C) Both supply and demand curves shifted to the right.
D) Supply curve moved right and demand curve shifted to the left.

Question

Quizplus · Accepted Answer

When households prepare for a hurricane, the demand for plywood increases as people buy more to protect their homes, shifting the demand curve to the right. The supply curve remains unchanged in the short term.

Using the Supply and Demand Model, What Is the Best