Suppose There Are a Series of Forest Fires That Affect

question 89

Multiple Choice

Suppose there are a series of forest fires that affect the lumber industry while,at the same time,consumers demand more wooden furniture.The wooden furniture market would experience

• A)An increase in price and an indeterminate change in quantity.
• B)An increase in price and an increase in quantity.
• C)An increase in quantity and an indeterminate change in price.
• D)A decrease in price and an indeterminate change in quantity.

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Definitions:

Poor Countries

Nations with low levels of economic activity, low per capita income, and generally low standards of living.

Catch-Up Effect

The property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

Economic Growth Rates

The percentage increase in the market value of the goods and services produced by an economy over time, typically measured on an annual basis.

Saving Rate

The proportion of disposable income that is saved rather than spent on consumption of goods and services.