Which of the following will result in a decrease in demand for residential housing in the short run?
A)a decrease in the price of lumber
B)an increase in the wages of carpenters
C)a decrease in real household incomes
D)a decrease in the prices of residential housing

Question

Quizplus · Accepted Answer

A decrease in real household incomes would lead to a decrease in demand for residential housing as people would have less money available to spend on housing. Options A and D would lead to an increase in demand as they would make housing more affordable. Option B may not have a significant impact on demand as it only affects the supply side of the market.

Which of the Following Will Result in a Decrease in Demand