If a Construction Boom Leads to an Increase in the Price

question 49

Multiple Choice

If a construction boom leads to an increase in the price of lumber, how will the higher lumber prices influence the wood furniture market?

• A) The demand for wood furniture will decline, and furniture prices will fall.
• B) There will be a shortage of wood furniture.
• C) There will be a surplus of wood furniture.
• D) The supply of wood furniture will decline, and furniture prices will increase.

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Definitions:

Working Memory Capacity

The amount of information that an individual can hold and manipulate in their mind at one time for short periods.

Sense of Self

The perception or consciousness of one's own identity and being.

Personal Relevance

The degree to which information or an event is pertinent to an individual's life and interests.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.