As a result of the decline in the real estate markets,many sellers and builders were very eager to sell their homes.As a result of this greater willingness to sell,we would expect to see:
A) an increase in equilibrium price and an increase in equilibrium quantity.
B) an increase in equilibrium price and a decrease in equilibrium quantity.
C) a decrease in equilibrium price and an increase in equilibrium quantity.
D) a decrease in equilibrium price and a decrease in equilibrium quantity.

Question

Quizplus · Accepted Answer

The greater willingness to sell by sellers and builders will increase the supply of homes in the market. According to the law of supply, an increase in supply results in a decrease in equilibrium price and an increase in equilibrium quantity. Therefore, we expect to see a decrease in equilibrium price and an increase in equilibrium quantity in the real estate market.

As a Result of the Decline in the Real Estate