Recall Application 1, "Hurricane Katrina and the Baton Rouge Housing Prices," to answer the following questions:
-The change in the housing prices in Baton Rouge caused by Hurricane Katrina in 2005 can be illustrated as an increase in demand because:

Question

Quizplus · Accepted Answer

Hurricane Katrina displaced many people, leading to an increased demand for housing in Baton Rouge. This increased demand resulted in both higher prices and a higher quantity of houses being demanded.