Recent Forest Fires in the Western States Are Expected to Cause

question 65

Multiple Choice

Recent forest fires in the western states are expected to cause the price of lumber to rise in the next six months.As a result,we can expect the supply of lumber to

• A)fall in six months but not now.
• B)increase in six months when the price goes up.
• C)fall now.
• D)increase now to meet as much demand as possible.

---

Definitions:

Fair Market Value

The price at which property would sell on the open market between a willing buyer and a willing seller, each having reasonable knowledge of the relevant facts.

Recourse

Recourse refers to the legal right to demand compensation or payment from an individual or entity responsible for a loss, debt, or other obligation.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production.

CIF Agreements

Contracts that stipulate the seller is responsible for the cost, insurance, and freight of goods being transported to a designated location.