If many more home sellers and builders have become more eager to sell their homes, we would expect to see:
A)an increase in equilibrium price and an increase in equilibrium quantity of homes sold.
B)an increase in equilibrium price and a decrease in equilibrium quantity of homes sold.
C)a decrease in equilibrium price and an increase in equilibrium quantity of homes sold.
D)a decrease in equilibrium price and a decrease in equilibrium quantity of homes sold.

Question

If many more home sellers and builders have become more eager to sell their homes, we would expect to see:
A)​an increase in equilibrium price and an increase in equilibrium quantity of homes sold.
B)​an increase in equilibrium price and a decrease in equilibrium quantity of homes sold.
C)​a decrease in equilibrium price and an increase in equilibrium quantity of homes sold.
D)​a decrease in equilibrium price and a decrease in equilibrium quantity of homes sold.

Quizplus · Accepted Answer

If more home sellers and builders are eager to sell their homes, this means that the supply of homes on the market will increase. If supply increases, while demand remains constant, this will cause a surplus of homes which will push the equilibrium price down. At the same time, the increase in supply will result in an increase in the equilibrium quantity of homes sold. Therefore, we would expect to see a decrease in the equilibrium price and an increase in the equilibrium quantity of homes sold.

If Many More Home Sellers and Builders Have Become More