Predict the effect of higher wood prices on the equilibrium price

Predict the effect of higher wood prices on the equilibrium price

Suppose that, as the article says, softwood lumber accounts
Subject: Economics    / General Economics
Question
Suppose that, as the article says, softwood lumber accounts for about 20 percent of the cost of materials in a new house. Shift the supply curve to the left
by 12 percent. Assume that the initial price of new housing is $100,000, that the price of elasticity of demand is 1.0, and that the price of elasticity of supply
is 3.0. Predict the effect of higher wood prices on the equilibrium price of new housing. Illustrate your answer with a graph that shows the initial point (a) and
the new equilibrium (b).