Market Equilibrium and Disequilibrium Practice Test

Assume the market for lumber is in equilibrium. A widespread pest infestation destroys a significant portion of the forests used for lumber production. What is the most likely effect on the equilibrium price and quantity of lumber?

In the market for coffee, a popular new diet promotes drinking three cups per day. At the same time, ideal weather conditions lead to a record coffee bean harvest. Which of the following is the certain outcome in the coffee market?