Question

Based on the information presented in the scenario,

which factor is affecting the supply created by the
furniture company?
A custom furniture company has recently learned that a
natural disaster has affected its oak wood supply. Because
of this disaster, the furniture company has decided to
produce a new line of furniture using pine, because it is more readily available.

a. elasticity of supply
b. the law of supply
c. competition
d. ability to produce

Answer 1

ability to produce

Step-by-step explanation:

Answer 2

Option D, ability to produce

Step-by-step explanation:

It is understood from the description that due to hindrances in the supply of raw material, company has decided to produce furniture made up of pine tree.

Both the elasticity of supply and the law of supply establish a relationship between the supply of goods and its price. Therefore, these two are not the correct answer.

This is also not a case of competition. However, the ability of the company to produce standard furniture using pine wood along with oak wood is depicted in this description.

Hence, option D is correct