1. The price of lumber has risen dramatically this year. This means that:

1. There had been a surplus of lumber right before prices began to rise.
2. The information being conveyed was that the price of lumber was above equilibrium before prices increases. Now, because of higher prices there is most likely a surplus of lumber.
3. Quantity demanded was greater than quantity supplied right before prices started to rise. Now, the lumber market is most likely closer to, or at, an equilibrium condition.
4. As prices have increased demand has decreased, leading the market to a place where the invisible hand no longer is putting upward pressure on prices.
5. A and B only.