Ceteris paribus, if the price of lumber increases, we would expect an increase in the supply of lumber.

Question

Quizplus · Accepted Answer

The statement is incorrect. An increase in the price of lumber would generally lead to an increase in the quantity supplied of lumber, but not necessarily an increase in the overall supply. The supply of lumber is determined by various factors including the availability of resources, technological advancements, and government regulations, which may not be affected by changes in price alone.

Ceteris Paribus, If the Price of Lumber Increases, We Would