If the Supply Curve for Housing Is Perfectly Inelastic, Then

question 21

Multiple Choice

If the supply curve for housing is perfectly inelastic, then a reduction in demand will cause the equilibrium price to:

• A) rise and the equilibrium quantity to fall.
• B) rise and the equilibrium quantity to stay the same.
• C) fall and the equilibrium quantity to fall.
• D) fall and the equilibrium quantity to stay the same.

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