Respuesta :
The right answer for the question that is being asked and shown above is that: "a. Lower demand will prevent large increases in timber prices." it is important to reduce demands for timber because a. Lower demand will prevent large increases in timber prices.
Answer:
Lower demand will prevent large increases in timber prices.
Explanation:
The law of demand in economics states that, if all other factors remain equal, the higher the price of a particular good, the lesser the demand for that good. In other words, the higher the price, the lower the quantity demanded.
Hence, if demand increases and supply remains unchanged, it now leads to higher equilibrium price and higher quantity demanded. If demand decreases and supply remains unchanged, then it now leads to lower equilibrium price and lower quantity demanded.
Hence a lower demand for timber will prevent an undue increase in the price of timber thus lowering the price.
