Suppose That the Equilibrium Price and Quantity of New Houses

question 23

Multiple Choice

Suppose that 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 wage paid carpenters who build new houses might have risen.
• D)The cost of wood framing used to build houses might have fallen.
• E)The rent for nearby apartments might have fallen.

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Definitions:

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Dynamometer

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Distraction-Conflict Theory

A theory suggesting that the presence of others can increase arousal and facilitate performance on familiar tasks but may hinder performance on complex tasks due to attentional conflict.