Suppose there are a series of forest fires that affect the lumber industry while,at the same time,consumers demand more wooden furniture.The wooden furniture market would experience
A)An increase in price and an indeterminate change in quantity.
B)An increase in price and an increase in quantity.
C)An increase in quantity and an indeterminate change in price.
D)A decrease in price and an indeterminate change in quantity.

Question

Quizplus · Accepted Answer

The forest fires would lead to a decrease in the supply of lumber, causing the price to increase. However, because the demand for wooden furniture is increasing at the same time, it is unclear how this will affect the quantity demanded. Therefore, there will be an indeterminate change in quantity.

Suppose There Are a Series of Forest Fires That Affect