Ask Question
9 January, 08:42

Because Country A has no domestic sources of wood, it imports all its wood from wood-producing countries. If the price of wood in wood-producing countries increases substantially, which of the following is most likely to occurA Country A will import more wood to meet rising demand. B Country A will impose a tariff on wood imports. C Housing prices in Country A will increase as wood imports become more expensive. D Profits in other wood-producing countries will increase because of increased exports to Country A.

+4
Answers (1)
  1. 9 January, 09:01
    0
    C Housing prices in Country A will increase as wood imports become more expensive.

    Explanation:

    Since country A imports all wood from other countries, an increase in price of wood by suppliers means that they are now expensive. Country A will be paying much more money for the same amount of supply they imported before prices rose. This will lead to housing prices to increase as a way to pass over the costs to homebuyers and tenants through rising home prices and rents respectively.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Because Country A has no domestic sources of wood, it imports all its wood from wood-producing countries. If the price of wood in ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers