Which of the following would tend to increase the price of lumber?
A) a technological advance that lowers the cost of cutting timber
B) an increase in the demand for newly constructed homes
C) a decrease in the demand for wooden rocking chairs
D) a decrease in the tax imposed on firms who produce lumber

Question

Quizplus · Accepted Answer

An increase in the demand for newly constructed homes would increase the demand for lumber, thus driving up its price.

Which of the Following Would Tend to Increase the Price