A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to:
A. increase if current property values are greater than the cost of construction
B. decrease if current property values are greater than the cost of construction
C. increase if current property values equal the cost of construction
D. decrease if current property values equal the cost of construction
Answer: A. increase if current property values are greater than the cost of construction
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