Assume that the demand for paper products increases. Then, we expect that the
A) demand for trees will also increase.
B) demand for trees will stay the same.
C) demand for trees will decrease.
D) effect on the demand for trees is uncertain; it depends on the elasticity of the demand for paper.

Question

Quizplus · Accepted Answer

The demand for trees will increase because trees are a primary input in the production of paper products, and an increase in demand for paper products typically leads to an increase in demand for the inputs needed to produce them.

Assume That the Demand for Paper Products Increases