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Assume lumber is an important input for the construction of new houses, and new houses are a substitute for rental housing. If wildfires burn thousands of acres of trees that would have been used to produce lumber, which of the following correctly describes the most likely impact of these wildfires?

A

Increased equilibrium price for new houses.

B

Decreased demand for rental housing.

C

Increased supply of rental housing.

D

Increased equilibrium quantity of new houses.

E

Decreased equilibrium price for rental housing.

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