If price is above the equilibrium level in the competitive market for houses, co

Question

If price is above the equilibrium level in the competitive market for houses, competition among sellers to reduce the resulting:
A) housing surplus will increase quantity demanded and decrease quantity supplied of houses.
B) housing shortage will decrease quantity demanded and increase quantity supplied of houses.
C) housing surplus will decrease quantity demanded and increase quantity supplied of houses.
D) housing shortage will increase quantity demanded and decrease quantity supplied of houses.

Explanation / Answer

D) housing shortage will increase quantity demanded and decrease quantity supplied of houses.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.