Assume There Is a Simultaneous Decrease in the Incomes of People

question 18

Multiple Choice

Assume there is a simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to carpenters,plumbers,and electricians.All else constant,we can predict,with certainty,that in the market for new homes the equilibrium:

• A)quantity of new homes will decrease.
• B)quantity of new homes will increase.
• C)price of new homes will decrease.
• D)price of new homes will increase.

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Definitions:

Homogamy

The practice of individuals marrying others with similar characteristics, such as socio-economic status, ethnicity, religion, or age.

Racial

Pertaining to race or the classification of humans into groups based on physical traits, ancestry, genetics, or social relations, often associated with systemic disparities and biases.

Religious

Pertaining to or connected with religion, including beliefs, practices, and rituals associated with a faith.

Class Backgrounds

The social and economic conditions into which individuals are born, influencing their opportunities, attitudes, and behaviors.