Author Question: Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude ... (Read 109 times)

penguins · **on:** Jun 30, 2018

Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:
a. the demand for new homes has risen.
b. the law of demand has been violated.
c. new firms have entered the construction industry.
d. construction firms must be facing higher costs.

Question 2

Which of the following is the best description of the effects of an increase in the supply of bread?
a. Consumers will pay more for bread.
b. Bread prices will fall, and bread sales will rise.
c. A permanent surplus of bread will remain on the market.
d. Bakers will have higher marginal costs.