If the price of oak lumber increases,what happens to consumer surplus in the market for oak cabinets?
A)It increases.
B)It decreases.
C)It will not change consumer surplus; only producer surplus changes.
D)It depends on what event led to the increase in the price of oak lumber.

Question

Quizplus · Accepted Answer

An increase in the price of oak lumber directly affects the cost of production for oak cabinets, causing the price to increase as well. As a result, consumers will have to pay more for oak cabinets, reducing consumer surplus.

If the Price of Oak Lumber Increases,what Happens to Consumer