Much lumber used in the United States comes from Canada even though U.S.- produced lumber is available.Canadian lumber is cheaper due to subsidies provided by the Canadian government to its lumber industry.The U.S.government instituted a tax on Canadian lumber,which made U.S.lumber the least expensive to purchase although still priced much higher than contractors were used to paying.As a result of higher- priced lumber,economists predicted the cost of building a house would increase,and there would be a decline in the number of consumers buying new homes because the demand for houses is _.
A) elastic
B) fixed
C) economic
D) joint
E) inelastic
Correct Answer:
Verified
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