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Zarrin [17]
3 years ago
7

If a manufacturing plant that employs 20% of the local labor force closes, the likely effect on the area’s real estate values

will reflect the principle of?
Business
1 answer:
love history [14]3 years ago
6 0

Answer:

Supply and demand

Explanation:

First is important to remember the supply and demand principle. We can analyze this by the law of supply and demand.

The law of supply states that "the quantity of a good supplied rises as the market price rises, and falls as the price falls".

Conversely, the law of demand says that "the quantity of a good demanded falls as the price rises, and the quantity of a good increase as the price decrease".

For this case if the manufacturing plant close 20% of the people in the area will not have a job and the prices of the real state values will tend to decrease and if the prices decrease the quantity falls from the supply law.

 

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