For a wood furniture manufacturer,an increase in the cost of lumber will cause the supply curve to:

Question

Quizplus · Accepted Answer

An increase in the cost of lumber will lead to higher production costs for the wood furniture manufacturer, which will reduce the profitability of producing the same quantity of furniture. As a result, the manufacturer will supply a smaller quantity of wood furniture at any given price level. Therefore, the supply curve will shift to the left, indicating a decrease in supply.

For a Wood Furniture Manufacturer,an Increase in the Cost of Lumber