[Y = C + I + G] when ________ in the income-expenditure model.

A key factor that determines the geographic extent of a housing market is the distance that commuters are willing to travel from home to work

Which of the following events would NOT help to expand the geographic extent of the housing market in a metropolitan area? A) Price of gasoline declines B) State gasoline tax increases C) Public transit fares decrease D) none of the above

Use the following statements to answer the question:

I. Consider the problem of negotiating the price of a rug that costs $100 to make. If there are two buyers (one with a maximum willingness-to-pay of $200 and one with a maximum willingness-to-pay of $250 ), then the situation is no longer a constant sum game. II. The likely outcome from the game described in statement I is that the second buyer will bid a price slightly above $200 (e.g., $201 ) to win the rug. A) I and II are true. B) I is true and II is false. C) II is true and I is false. D) I and II are false.