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- How is the demand for lumber affected by the demand for housing?

- How is the demand for lumber affected by the demand for housing?

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The demand for lumber is a derived demand. This because the uses of lumber particularly in housing, drives the demand for lumber. When demand for new housing increases, the demand for lumber also increases. When demand for any other use of lumber increases, the demand for lumber also increases and vice-versa.The demand curve for lumber shifted to the right. Hence, the equilibrium price of lumber increased by a huge margin.Demand for lumber is closely related to the housing market. Hence, it can be proven that the demand for lumber is a derived demand.

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