What is the effect on the price and quantity of wooden desks of a rise in the price of wood?

Question

Quizplus · Accepted Answer

When the price of wood, a key input in the production of wooden desks, increases, the cost of producing wooden desks also increases. This typically leads to a decrease in the supply of wooden desks, as producers are less willing or able to produce at the same quantity for a given price. As a result, the equilibrium quantity of wooden desks decreases because there are fewer desks available. Meanwhile, the decrease in supply leads to an increase in the equilibrium price of wooden desks, as the reduced availability of desks makes them more valuable, assuming demand remains constant.

What Is the Effect on the Price and Quantity of Wooden