Suppose That the Equilibrium Price and Quantity of New Houses

question 116

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) The wage paid carpenters who build new houses might have risen.
• B) A technological advance in framing a new house might have occurred.
• C) The rent for nearby apartments might have fallen.
• D) More home buyers might have moved into the area.
• E) The cost of wood framing used to build houses might have fallen.

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Definitions:

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in technical analysis of financial markets or to analyze business data over time.

Economically Important Relationships

Linkages or interactions between economic entities or factors that significantly influence outcomes such as growth, inflation, or market dynamics.

Common-size Balance Sheet

A financial statement displaying all line items as a percentage of total assets, facilitating comparison across companies or periods.

Total Assets

The sum of all assets owned by a business, including cash, inventory, property, and equipment, reflecting the total resources of an entity.