Suppose That the Equilibrium Price and Quantity of New Houses

question 249

Multiple Choice

Suppose that the equilibrium price and quantity of new houses both increase.Which of the following could be a cause of this change?

• A) Both the supply and the demand for new houses increased, and the supply increased by more than the demand.
• B) The demand for new houses increased, and the supply did not change.
• C) Both the supply and demand for new houses decreased.
• D) The supply of new houses decreased, and the demand for new houses did not change.
• E) The supply of new houses increased, and the demand for new houses did not change.

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Definitions:

Normative Social Influence

The effect others have on an individual, causing them to adapt their behaviors to gain acceptance and approval.

Deindividuation

The loss of self-awareness and self-restraint occurring in group situations that foster arousal and anonymity.

Insecure

Feeling uncertain or lacking confidence in oneself, which can affect emotional well-being and interpersonal relationships.

Destructively Obedient

Following orders without moral consideration, leading to harmful actions that the individual might not ordinarily commit.