An increase in demand for lumber has caused an increase in its equilibrium price

Question

An increase in demand for lumber has caused an increase in its equilibrium price. Choose all that apply.

As a result of the higher price of lumber, the supply of lumber will increase. (That is, the supply curve will shift to the right.)

Compared to the original equilibrium, at the new equilibrium there will be a higher price and a higher quantity.

As a result of the higher price of lumber, the demand for lumber will decrease. (That is, the demand curve for lumber will now shift to the left)

As the price of lumber rises, the supply curve of lumber will stay the same, but there will be a movement along that supply curve to a point that corresponds to a higher quantity. (That's called an increase in quantity supplied.)

As a result of the higher price of lumber, the supply of lumber will increase. (That is, the supply curve will shift to the right.)

Compared to the original equilibrium, at the new equilibrium there will be a higher price and a higher quantity.

As a result of the higher price of lumber, the demand for lumber will decrease. (That is, the demand curve for lumber will now shift to the left)

As the price of lumber rises, the supply curve of lumber will stay the same, but there will be a movement along that supply curve to a point that corresponds to a higher quantity. (That's called an increase in quantity supplied.)

Explanation / Answer

Ans:

Explanation:

When price rises, it will lead to a movement along the supply curve.

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