Consider the market for new homes. Ceteris paribus, which event will cause consumer surplus to increase, assuming the market sells at the equilibrium prices?
A) Burdened with student loan debt, many millennials delay marriage, children, and buying homes.
B) Tariffs on lumber from Canada increase construction costs.
C) A new tax law decreases the amount that homeowners can deduct on their mortgages.
D) Low mortgage interest rates provide an incentive for potential homeowners to buy now.
Correct Answer:
Verified
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