Use the following to answer questions :
Figure: Shifts in Demand and Supply IV
-(Figure: Shifts in Demand and Supply IV) Look at the figure Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose the price of lumber falls dramatically. Which panel BEST describes how this will affect the market for new houses?
A)panel A
B)panel B
C)panel C
D)panel D

Question

Use the following to answer questions :
Figure: Shifts in Demand and Supply IV 
-(Figure: Shifts in Demand and Supply IV) Look at the figure Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose the price of lumber falls dramatically. Which panel BEST describes how this will affect the market for new houses?
A)panel A 
B)panel B 
C)panel C 
D)panel D

Quizplus · Accepted Answer

The fall in the price of lumber will shift the supply curve for new houses to the right, leading to a decrease in the price and an increase in the quantity of new houses supplied.

Use the Following to Answer Questions