The quantity of good A c. Both the price and the quantity of good A d. Incomes. The price of an input into the production of good A. 2. Suppose the hourly rate charged at sawmills has fallen.
Sawmills are an input in the production of lumber.
The elasticity of lumber demand is -2. The elasticity of lumber supply is 2. There is not enough information to determine any elasticity. Due to higher prices, consumer expenditures on the product will increase. B. Due to lower prices, consumer expenditures on the product will decrease.