Washington, D.C.'s metro train system is being extended further into the neighboring states of Maryland and Virginia, thereby reducing the cost of commuting into the United States' capitol. Other things being held constant, this can be expected to:
A) decrease the extent of the market for housing around Washington, D.C.
B) increase the extent of the market for housing around Washington, D.C.
C) have no effect on the extent of the market for housing around Washington, D.C. as the actual geography remains unchanged.
D) have no effect on the extent of the market for housing around Washington, D.C. as the range of houses available has not changed.
E) have no effect on the extent of the market for housing around Washington, D.C. as property taxes have not changed.

Question

Quizplus · Accepted Answer

The extension of the metro train system into neighboring states will make commuting into Washington, D.C. easier and cheaper. As a result, more people may choose to live outside the city and commute in using the train system. This will increase the demand for housing in the surrounding areas and expand the extent of the housing market in those areas.