If a Press Release Reports That the Future Price of New

question 175

Multiple Choice

If a press release reports that the future price of new homes is expected to decrease and demanders and suppliers respond equally to the change in the expected future price, which of the following is true?

• A)Both the equilibrium quantity and price will decrease.
• B)Both the equilibrium quantity and price will increase.
• C)The equilibrium price will decrease and the equilibrium quantity will remain the same.
• D)The equilibrium price will increase and the equilibrium quantity will decrease.

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Definitions:

Events A And B

Refers to two occurrences in probability and statistics that can be analyzed for their individual or joint likelihood.

Mutually Exclusive

Events that cannot happen at the same time.

Joint Probability

The probability of two events occurring simultaneously.

Independent

In statistics, refers to variables that are not affected by or related to the changes in other variables in the context of a study or model.