Recall Application 1, "Hurricane Katrina and the Baton Rouge Housing Prices," to answer the following questions:
-Hurricane Katrina in 2005 caused housing prices to rise in the affected area due to

Question

Quizplus · Accepted Answer

Hurricane Katrina caused significant damage to the housing infrastructure in the affected area, leading to a decrease in housing supply. This decrease in supply led to an increase in housing prices as demand remained constant or increased due to both returning residents and new migrants.