A headline reads, "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n)

Question

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The increase in lumber prices will increase the cost of building new homes, which will result in an increase in the price of new homes. This increase in price will decrease the quantity demanded of new homes. Therefore, there will be an increase in the price of new homes and a decrease in quantity.

A Headline Reads, "Lumber Prices Up Sharply