Recall the Application about Hurricane Katrina and housing prices to answer the following question(s).
After Hurricane Katrina, about 250,000 New Orleans residents relocated to Baton Rouge, Louisiana, and as
a result, housing prices in Baton Rouge rose from an average of $130,000 for a single -family home to
$156,000 six months later. Just prior to the hurricane, 3,600 homes were listed for sale in Baton Rouge, and
a week after the hurricane only 500 homes were listed for sale.
-According to this Application, an increase in the demand for homes in Baton Rouge would normally create, ceteris paribus,

Question

Quizplus · Accepted Answer

An increase in demand typically leads to an increase in the quantity supplied, as sellers are willing to sell more at higher prices.

Recall the Application About Hurricane Katrina and Housing Prices to Answer