In the 1990s,many people had rising incomes.At the same time,there was a rise in cost of wood.Holding other factors constant,the demand for houses_________ and the supply for houses_________.

Question

Quizplus · Accepted Answer

With rising incomes, people have more money to spend on housing, increasing the demand. However, the rise in cost of wood, a key material in construction, would increase the cost of producing houses and decrease the supply. Thus, demand increases while supply decreases, leading to an increase in prices.

In the 1990s,many People Had Rising Incomes