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:

Question

Quizplus · Accepted Answer

With the greater willingness to sell, the supply of homes would increase, which would shift the supply curve to the right. This would lead to a decrease in equilibrium price, as there is a greater quantity of homes being supplied at any given price. The increase in supply would also lead to an increase in equilibrium quantity, as there are more homes being sold at the lower price.

As a Result of the Decline in the Real Estate