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(Solved): The price of lumber rose substantially in the last couple years. Assume the new housing market is pe ...
The price of lumber rose substantially in the last couple
years. Assume the new housing market is perfectly
competitive - what effect do we expect this will have on
housing prices in the short run?
The supply curve will shift inward (left), raising housing
prices.
The demand curve will shift inward (left), lowering housing
prices.
The supply curve will shift outward (right), raising housing
prices.
The demand curve will shift outward (right), raising housing
prices.