If a construction boom leads to an increase in the price of lumber, how will the higher lumber prices influence the wood furniture market?
A) The demand for wood furniture will decline, and furniture prices will fall.
B) There will be a shortage of wood furniture.
C) There will be a surplus of wood furniture.
D) The supply of wood furniture will decline, and furniture prices will increase.

Question

Quizplus · Accepted Answer

Higher lumber prices increase production costs for wood furniture, leading to a decrease in supply and higher furniture prices.

If a Construction Boom Leads to an Increase in the Price