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Observations of the housing market

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During the housing crash in 2008, housing prices fell, and the number of new houses sold in the United States also fell. The link to "New One Family Houses Sold" does not include existing house sales but assume that existing house sales fell as well. Using the supply and demand analysis described in the text starting on page 103 (section 8.6), would the observations of the housing market be explained by a shift of the demand curve, the supply curve, or both? Would the demand and supply increase, decrease or remain the same?

Reference no: EM132631308

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