Figure 4-6

-Refer to Figure 4-6.Suppose the supply curves that are drawn represent supply curves for single-family residential houses.Then the movement from S to S₁ could be caused by

Question

Figure 4-6
 
-Refer to Figure 4-6.Suppose the supply curves that are drawn represent supply curves for single-family residential houses.Then the movement from S to S₁ could be caused by

Quizplus · Accepted Answer

A decrease in the price of lumber, a key input in house construction, would reduce costs for builders, leading to an increase in supply, shifting the supply curve from S to S₁.

Figure 4-6 -Refer to Figure 4-6.Suppose the Supply Curves That Are Drawn