Assume mortgages and houses are complements in consumption; if the price of mortgages decreases (decreases in interest rates), we would expect to see
a. An increase in demand for houses
b. An decrease in demand for houses
c. An increase in the quantity of houses demanded
d. An decrease in the quantity of houses demanded
a
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The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point c could be the result of
A) a decrease in technology. B) a decrease in the relative price of a soft drink. C) an increase in the relative price of a soft drink. D) an increase in the money price of a soft drink.
A toll of $1 per car is imposed on a road regardless of time of day. If the toll creates equilibrium travel flows at the busiest time of day, it will create a __________ at all other times
A) surplus of space B) shortage of space C) zero money price for space D) zero opportunity cost for space