Suppose Prices for New Homes Have Risen, Yet Sales of New

question 26

Multiple Choice

Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:

• A) the demand for new homes has risen.
• B) the law of demand has been violated.
• C) new firms have entered the construction industry.
• D) construction firms must be facing higher costs.

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Definitions:

Severely Intoxicated

A state of being under the influence of alcohol or drugs to a significant degree, impacting cognitive and physical abilities.

Capacity

In law, the ability of an individual to enter into a contract, evidenced by their being of sound mind and of legal age, or by a business to enter into agreements.

Ratification

The act of giving formal consent to a treaty, contract, or agreement, making it officially valid.

Minor

An individual under the legal age of adulthood, often considered as under 18 years old in many jurisdictions.