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nlexa [21]
3 years ago
9

What impact would a sudden increase in the price of wood have on producers and consumer? How might each group respond to the cha

nge in price?
Chemistry
2 answers:
Lisa [10]3 years ago
6 0
The law of supply states, things remaining equal, an increase in price results in an increase in quantity supplied. The direct relation which is between the price and quantity. 

Therefore, when the price of wood increases, then the producers increases the quantity which is produced as they are willing to sell more at a higher price. Each group might respond to the change in price in that, the law of demand states that all things are equal.
A decrease in a quantity leads to an increase in price which is demanded. The existence in an inverse relation which is between price and quantity.
When the demand for good increases the consumer demand decreases.
Ket [755]3 years ago
4 0
The impact would make producers pay more increasing the pay of the workers and uping the price of the product. It would also slow the buying of wooden projects because of the Increase of price.
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