Answer:
O D. The price is likely to decrease because supply has increased.
SUBMIT
Explanation:
A new source of lumber will result in an increase in the quantity available for sale. As per the laws of supply and demand, an increase in supply without a corresponding increase in demand leads to reduced prices.
The prevailing market price or equilibrium price is the price at which the current demand matches the current supply. There are no shortages or excesses. An increase in supply creates a surplus in the market. For suppliers to sell the excess lumber supplied, they have to reduce prices to create more demand.
