Suppose the Equilibrium Price and Quantity of New Houses Both

question 133

Multiple Choice

Suppose the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?

• A) A technological advance in framing a new house might have occurred.
• B) More home buyers might have moved into the area.
• C) The cost of wood framing used to build houses might have fallen.
• D) The rent for nearby apartments might have fallen.
• E) The wage paid to carpenters who build new houses might have risen.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Humanistic Psychology

A school of thought that investigates how people grow to become happier and more fulfilled; it focuses on the basic goodness of people.

Behaviorism

A branch of psychology that focuses on observable behaviors rather than on internal events like thinking and emotion, emphasizing the effects of environment on behavior.

Gestalt Psychology

A theory of mind and brain positing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies.