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Last Summer, Real Estate Prices in Your Town Soared

Question 29

Multiple Choice

Last summer, real estate prices in your town soared. You started noticing more "For Sale" signs in your neighbors' yards. You conclude that:


A) people don't like to live in your neighborhood anymore.
B) when housing prices rose, they started to exceed some of your neighbors' reservation prices.
C) the demand curve for housing in your town has shifted to the left while supply remained constant.
D) the supply curve for housing in your town has shifted to the right while demand has remained constant.

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