The Model of Supply and Demand Leads to the Prediction

question 3

Multiple Choice

The model of supply and demand leads to the prediction that high interest rates cause:

• A) an increase in the price of housing and a decrease in the number of homes purchased.
• B) a decrease in the price of housing and an increase in the number of homes purchased.
• C) an increase in both housing prices and the number of homes purchased.
• D) a decrease in both housing prices and the number of homes purchased.

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Definitions:

Divergent Thinking

A thought process that allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints.

Practical Ideas

Concepts or solutions that can be implemented effectively and have potential for real-world application.

Human-Centered Design

A design approach that prioritizes the needs, wants, and limitations of the end-user at every stage of the design process.

Human Needs

Fundamental requirements that people need to survive and thrive, including physiological needs, safety, love, and esteem.