How will an increase in lumber prices influence the home construction market?
a. The demand for newly constructed homes will increase.
b. The demand for newly constructed homes will decrease.
c. The supply of newly constructed homes will increase.
d. The supply of newly constructed homes will decrease.
Question 2
When economists say the supply of a product has decreased, they mean that:
a. the supply curve has shifted to the left.
b. the product price has decreased, and as a consequence, suppliers are producing less of the product.
c. producers are now willing to sell more of this product at each possible price.
d. the supply curve has shifted to the right.
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