Which of the following is likely to occur if the demand for housing increases?

Question

Quizplus · Accepted Answer

An increase in the demand for housing will lead to an increase in home prices. As a result, buyers may need to borrow more money to purchase a home, which will increase demand for mortgages, thus leading to a rise in interest rates. Option A is incorrect because, with an increase in demand, the price of lumber for building new homes will likely increase, not fall. Option C is incorrect because an increase in housing demand does not necessarily lead to an increase in demand for schools. Option D is incorrect because an increase in housing demand will lead to an increase in demand for carpenters and other construction workers, which will likely lead to an increase in wages.

Which of the Following Is Likely to Occur If the Demand