As lumber becomes more expensive

Name: As lumber becomes more expensive
Brand: Quizplus
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Question

Quizplus · Accepted Answer

As lumber becomes more expensive, the cost of building a new house increases, causing the equilibrium quantity of new houses to decrease. This is because builders are less willing to build houses at higher costs, and consumers are less willing to buy houses at higher prices. Therefore, the demand for houses decreases, leading to a decrease in the equilibrium quantity of new houses.

As Lumber Becomes More Expensive