Suppose the Price of Real Estate Increases by 37

question 47

Multiple Choice

Suppose the price of real estate increases by 37.11% in Oakland next year. If the quantity of new homes supplied does not change, this means that the price elasticity of _____ will be perfectly _____ in Oakland next year.

• A) demand; elastic
• B) supply; inelastic
• C) demand; inelastic
• D) supply; elastic

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Definitions:

Wheat

A staple grain that serves as a primary food source for a large portion of the world's population, used in a variety of products including bread, pasta, and cereal.

Cattle

Domesticated bovine animals raised for their meat (beef), milk, or hides, or as working animals.

Absolute Advantage

The capability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.

Tractors

Heavy vehicles designed for agricultural use, primarily to mechanize farming tasks including plowing, planting, and harvesting.