Use the following to answer questions :
Exhibit: Residential Investment
-(Exhibit: Residential Investment) Based on the graph, if the capital market is initially in equilibrium at A with the relative price of housing equal to P_H3/P and the stock of housing capital equal to K_H2, then holding other factors constant, if a massive earthquake destroys a significant portion of the stock of housing capital, house prices will move to ______ and the flow of residential housing will move to______.

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Use the following to answer questions :
Exhibit: Residential Investment

-(Exhibit: Residential Investment) Based on the graph, if the capital market is initially in equilibrium at A with the relative price of housing equal to P_H3/P and the stock of housing capital equal to K_H2, then holding other factors constant, if a massive earthquake destroys a significant portion of the stock of housing capital, house prices will move to ______ and the flow of residential housing will move to______.

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The Answer of Use the following to answer questions : Exhibit: Residential Investment -(Exhibit: Residential Investment) Based on the graph, if the capital market is initially in equilibrium at A with the relative price of housing equal to P_H3/P and the stock of housing capital equal to K_H2, then holding other factors constant, if a massive earthquake destroys a significant portion of the stock of housing capital, house prices will move to ______ and the flow of residential housing will move to______. A) P_H1/P; I_H4 B) P_H2/P; I_H3 C) P_H3/P; I_H2 D) P_H4/P; I_H1

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