1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lara31 [8.8K]
3 years ago
6

What would be the effect on the equilibrium price and equilibrium quantity of new housing if mortgage interest rates rise and th

e costs of building a house rise simultaneously?
a. The equilibrium price will fall, but the equilibrium quantity cannot be predicted.
b. The equilibrium price and the equilibrium quantity will fall.
c. The equilibrium price will rise and the equilibrium quantity will fall.
d. The equilibrium price cannot be predicted, but the equilibrium quantity will fall.
Social Studies
1 answer:
Afina-wow [57]3 years ago
3 0

Answer:

The correct answer is c. The equilibrium price will rise and the equilibrium quantity will fall.

Explanation:

The law of demand and supply states that, whenever the price of a good increases, the quantity demanded of that good decreases and whenever the price decreases, the quantity demanded increases.

In this example, the cost of building a house rises, so does the price of the house. This change will affect the demand curve, and less houses will be demanded. In addition, the cost of buying a house has increased due to increased mortgage interest rates. Both effects push prices up and quantity demanded down.

You might be interested in
Which is the farthest away?
marissa [1.9K]

Answer:

the end of the Milky Way

Explanation:

7 0
2 years ago
Which of the following is true of social class?
inn [45]

Answer:

Its either A or C

Explanation:

back in the days people where in a system called the Cast System in India. only the class that you were born in that is what you where. It was rare for someone to change their class if it was allowed. So im more leaning towards A

7 0
3 years ago
Read 2 more answers
Which of these events is CORRECTLY matched with the decade shown on the timeline?
Fed [463]

Answer:  C. World War II (1939-1945).

Explanation:

7 0
2 years ago
How come the Kush was a strong wealthy community?
Serggg [28]
It was strong and wealthy because it conquered Egypt but Egypt broke away.
<span />
3 0
3 years ago
Answer these questions
disa [49]

Answer:

12. speed

13. vector

14. slope

3 0
3 years ago
Other questions:
  • Which is not an apraxia
    8·1 answer
  • What was the impact of the attack on Fort Sumter?
    10·1 answer
  • The "A.D.A." was meant to bring about the legal equality of what group of people?
    10·1 answer
  • What did harvard medical school researchers conclude about the effects of the media on young people in fiji, who until recently
    7·1 answer
  • Why is the power to print money an expressed power
    11·1 answer
  • The implied protection of a right under the coverage of a broader constitutional protection is said to be within which of the fo
    6·1 answer
  • What is human development?​
    14·2 answers
  • When bill looks at his lamp alternately with his left eye and right eye, the image seems to jump from one position to another. t
    11·1 answer
  • Damage to the environment occurs because:_________a) pollution occurs naturally, with or without human activity. b) most busines
    5·1 answer
  • What are external forces that influence our actions and lives?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!