Suppose a combination of population growth and rising incomes increases both the demand for and the price of housing. In response, existing builders and new entrants construct more housing. As timber use outstrips the ability of forests to regrow, the price of timber rises. Consequently, the price of new housing rises. This scenario describes a(n):______.
a) industry in the trough.
b) declining industry
c) increasing cost industry
d) increasing profitability industry