In 2004, people paid $400,000 for their homes around Crystal City, Virginia. During the housing crisis, they could sell those houses for only $300,000. If homeowners are loss-averse, what price do they try to sell their homes for? Graphically, illustrate this situation with supply and demand curves. Is there an excess demand for housing?

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The Answer of In 2004, people paid $400,000 for their homes around Crystal City, Virginia. During the housing crisis, they could sell those houses for only $300,000. If homeowners are loss-averse, what price do they try to sell their homes for? Graphically, illustrate this situation with supply and demand curves. Is there an excess demand for housing?

In 2004, People Paid $400,000 for Their Homes Around Crystal