Question

recent pine beetle infestations that are destroying trees in the western provinces are expected to cause the price of lumber to rise in the next six months. as a result, we expect the supply of lumber to select one: a. increase now to meet as much demand as possible. b. fall now. c. increase in six months when the price goes up. d. fall in six months, but not now.

Answer 1

The recent pine beetle infestations are expected to cause the price of lumber to rise in the next six months, resulting in a decrease in supply of lumber at present.

Step-by-step explanation:

The recent pine beetle infestations in the western provinces of North America and Europe have led to significant destruction of trees. As a result, the price of lumber is expected to rise in the next six months due to a decrease in supply. When trees are infested and killed by pine beetles, there is a reduced availability of lumber. This decrease in supply will subsequently lead to a higher price of lumber in the market. Therefore, the correct answer to the question is:

b. fall now.