If the quantity of housing supplied in a community is less than the quantity of houses demanded, the existing price:
A) will remain unchanged.
B) will fall to clear the market.
C) will either fall or remain unchanged.
D) is below the market equilibrium price.
Ans: D) is below the market equilibrium price.
You might also like to view...
Refer to Figure 28-2. Suppose the economy is at point C in the figure above. If workers adjust their expectations of inflation, which of the following will be true?
A) The natural rate of unemployment is 6%. B) Workers and firms expect inflation to be 1%. C) The short-run Phillips curve will shift to the left. D) The short-run Phillips curve will shift to the right. E) The economy will move from C to A.
The consumer price index is
a. not very useful as a measure of the cost of living. b. a perfect measure of the cost of living. c. a useful measure, but not a perfect measure, of the cost of living. d. not used as a measure of the cost of living.