Assume there is a simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to carpenters,plumbers,and electricians.All else constant,we can predict,with certainty,that in the market for new homes the equilibrium:

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A simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to carpenters, plumbers, and electricians will lead to a decrease in demand for new homes as people will have less money to spend on them. At the same time, the decrease in wages will lead to an increase in production costs, which will cause a decrease in the supply of new homes. Thus, the market for new homes will experience a simultaneous decrease in demand and supply, leading to a decrease in the equilibrium price of new homes.

Assume There Is a Simultaneous Decrease in the Incomes of People