When a home is located in a city with a reputation for _________ weather, homebuyers in the area _____________________ for their homes because of that weather, ceteris paribus .
A)good; indirectly pay a higher price
B)good; indirectly pay a lower price
C)bad; directly pay a higher price
D)bad; indirectly pay a higher

Question

When a home is located in a city with a reputation for _________ weather, homebuyers in the area _____________________ for their homes because of that weather,  ceteris paribus .
A)good; indirectly pay a higher price
B)good; indirectly pay a lower price
C)bad; directly pay a higher price
D)bad; indirectly pay a higher

Quizplus · Accepted Answer

Homebuyers indirectly pay a higher price for homes in areas with good weather because desirable weather increases demand, leading to higher property values.

When a Home Is Located in a City with a Reputation