Determine the effect of each of the following events on either the demand or supply of new houses, and thus their price . Indicate (i)whether demand for, or supply of , new houses will increase or decrease , and (ii) the effect of the change upon the price of houses. (Assume all other factors remain the same.) a) The average incomes of Canadians rises after a period of stagnation. b) Mortgage rates rises. c) The cost of building materials rises.

Determine the effect of each of the following events on either the demand or supply of new houses, and thus their price . Indicate (i)whether demand for, or supply of , new houses will increase or decrease , and (ii) the effect of the change upon the price of houses. (Assume all other factors remain the same.) a) The average incomes of Canadians rises after a period of stagnation. b) Mortgage rates rises. c) The cost of building materials rises.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 12SQ

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