Suppose there is a tornado that levels a city. As rebuilding begins, how might you analyze this effect in the market for lumber?

A. The demand for lumber would increase, increasing both the equilibrium price and quantity.
B. The demand for lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.
C. The supply of lumber would decrease, increasing the equilibrium price and decreasing the equilibrium quantity.
D. The supply of lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.

Answer: A