If the Supply Curve for Housing Is Perfectly Inelastic, a Reduction

question 224

Multiple Choice

If the supply curve for housing is perfectly inelastic, 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.

Understand the concepts of gross and net investment and their impact on the economy.

Identify the factors that influence the level of investment in an economy.

Understand the role of interest rates, profit expectations, and economic cycles in investment decisions.

Recognize the differences between various types of investments and financial instruments.

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