Brazilian rosewood is renowned for its tonal qualities andgorgeous figuring on acoustic guitars. However, Brazilianrosewood is now banned from use in the construction of newguitars. What will likely happen to the price of used Brazilianrosewood guitars over time?
A) The price for used Brazilian rosewood guitars will increase because there will be a smaller supply of Brazilian rosewood
Guitars on the used market.
B) The price for used Brazilian rosewood guitars will decrease as fewer people decide to sell their guitars.
C) The price of used Brazilian rosewood guitars will increase at first and then decrease, since an increase in demand raises
Prices causing people to buy less of the product.
D) The price for used Brazilian rosewood guitars will increase as more people try to cash in by selling their increasingly rare
Guitars.
Correct Answer:
Verified
Q14: When there is a shortage of 1,000
Q38: Q40: Gains from trade are maximized when: Q41: Technological advances have increased the supply of
A)the market
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