Assume the market for used single-family homes is initially in equilibrium.All else constant,an increase in home foreclosures would cause equilibrium price and quantity to decrease.

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Quizplus · Accepted Answer

An increase in home foreclosures increases the supply of homes on the market. While this would typically decrease the price (due to higher supply), the effect on quantity is ambiguous without knowing how demand reacts. If demand is elastic, quantity could actually increase as lower prices attract more buyers.

Assume the Market for Used Single-Family Homes Is Initially in Equilibrium.All