A flood damages many homes and farms in the Midwest. Shortly thereafter, the price of plywood rises significantly. The events suggest that:
A)a decrease in the supply of plywood caused the price of plywood to rise.
B)an increase in the supply of plywood caused the price of plywood to rise.
C)a decrease in the demand for plywood caused the price of plywood to rise.
D)an increase in the demand for plywood caused the price of plywood to rise.

Question

A flood damages many homes and farms in the Midwest. Shortly thereafter, the price of plywood rises significantly. The events suggest that:
A)​a decrease in the supply of plywood caused the price of plywood to rise.
B)​an increase in the supply of plywood caused the price of plywood to rise.
C)​a decrease in the demand for plywood caused the price of plywood to rise.
D)​an increase in the demand for plywood caused the price of plywood to rise.

Quizplus · Accepted Answer

The flood likely increased the demand for plywood as people needed materials to repair and rebuild homes and farms, leading to a rise in the price of plywood.

A Flood Damages Many Homes and Farms in the Midwest