When the price of wood is high:
A) consumers will be more likely to use wood in its least valuable uses.
B) consumers will be more likely to use wood in its most valuable uses.
C) the quantity demanded of wood will also rise.
D) the quantity demanded of wood will be unaffected.

Question

Quizplus · Accepted Answer

When the price of wood is high, consumers will be more likely to use wood in its most valuable uses because they will want to maximize their investment in the higher-priced wood by using it in applications that will provide the most benefit. This can lead to a shift in demand towards higher quality wood products and a decrease in demand for lower quality uses, such as paper or fuel.

When the Price of Wood Is High