13. Suppose over the next several years the level of income and wealth rises in the state of Florida. For the housing market this would mean: An increase in the quantity of houses demanded, rising prices and an increase in supply.An increase in the demand for houses, rising prices and an increase in quantity supplied.An increase in the quantity of houses demanded shortages and higher prices.A decrease in the quantity of houses supplied as demand increases.Price gouging in this market would be rampant.

The equilibrium price is established where the demand and supply are equal. The change in the…

Answered: Suppose over the next several years the…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 11PA

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13. Suppose over the next several years the level of income and wealth rises in the state of Florida. For the housing market this would mean:

An increase in the quantity of houses demanded, rising prices and an increase in supply.
An increase in the demand for houses, rising prices and an increase in quantity supplied.
An increase in the quantity of houses demanded shortages and higher prices.
A decrease in the quantity of houses supplied as demand increases.
Price gouging in this market would be rampant.

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