Question 14.14.   A headline reads "Lumber Prices Up Sharply."  In a competitive market, this situation would lead to a(n)  increase in the price and quantity of new homes.        decrease in the price and quantity of new homes.        increase in the price of new homes and decrease in quantity.        decrease in the price of new homes and increase in quantity.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter3: Market Demand And Supply
Section: Chapter Questions
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Question 14.14.   A headline reads "Lumber Prices Up Sharply."  In a competitive market, this situation would lead to a(n) 

increase in the price and quantity of new homes.

       decrease in the price and quantity of new homes.

       increase in the price of new homes and decrease in quantity.

       decrease in the price of new homes and increase in quantity.

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