Author Question: Suppose the price of lumber decreases. In the market for new homes, we would expect which of the ... (Read 75 times)

crazycityslicker · **on:** Jun 29, 2018

Suppose the price of lumber decreases. In the market for new homes, we would expect which of the following to occur?

A) the market clearing price will fall and the equilibrium quantity will rise.
B) the market clearing price will rise and the equilibrium quantity will fall.
C) both the market clearing price and the equilibrium quantity will fall.
D) both the market clearing price and the equilibrium quantity will rise.

Question 2

How should per capita real Gross Domestic Product (GDP) be used?

A) It is an accurate measure of economic well-being.
B) It is a reasonably good measure of productive activity.
C) Per capita real Gross Domestic Product (GDP) is a good gauge of a nation's quality of life because it takes into account a nation's cultural and spiritual values.
D) All of the above.