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Applying Neoclassical Theory to the Housing Market, the Downward Slope

Question 68

Multiple Choice

Applying neoclassical theory to the housing market, the downward slope of the demand curve for housing reflects ________.


A) higher expected household income
B) the inability to buy as much housing at a higher price
C) an expected increase in the relative price of housing
D) a decrease in the cost of building new houses

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