Suppose the local real estate market is in equilibrium. A recession causes local household incomes to decline. At the same time, construction of a large subdivision of new homes has just been completed. Given these two changes, we can predict the price of real estate will ________ and the quantity of real estate bought and sold will ________.
Fill in the blank(s) with the appropriate word(s).
fall; rise or fall
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When the price of a product increases from $35 to $45, the quantity supplied increases from 30 units to 40 units per week. Using the midpoint method, the price elasticity of supply is
A) 0.00. B) -1.1. C) 1.14. D) 1.35. E) 0.88.
If the market rate of interest is 8% per year, what is the present value of an amount of $10,000 to be received after: a) five years. b) ten years
What will be an ideal response?
A mother of three who receives $600 a month in total welfare benefits if she is not working, but who loses all those benefits and also pays 10 percent of her earnings to the tax collector if she takes a job paying $1000 a month, is being taxed on her
earnings at an effective marginal rate of A) 10 percent. B) 30 percent. C) 50 percent. D) 70 percent.
A cost imposed on people other than the consumers of a good or service is a:
a. price floor. b. negative externality. c. price ceiling. d. positive externality.