C. The price is likely to decrease because supply has increased.
When a new source of lumber is found, it increases the overall supply of lumber in the market. With an increase in supply relative to demand, the price of lumber is likely to decrease. As more lumber becomes available from the new source, there is more competition among suppliers, leading to lower prices.
If a new source of lumber is found, what is likely to happen to the price of lumber, and why?
A.
The price is likely to increase because demand will increase.
B.
The price is likely to increase because costs of production will increase.
C.
The price is likely to decrease because supply has increased.
D.
The price is likely to decrease because demand will decrease.
1 answer
1 answer