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What should happen in the market for furniture

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Consider the housing market. (1) Suppose that the current equilibrium price is $200,000 per home. Homes and furniture are complementary goods and the price of furniture decreased. Is this a change in supply or demand? Describe what would be true in the market if, after this development, the price remained at $200,000. Would this be an equilibrium price? Why or why not? What would eventually happen in the market for homes? What would happen to the equilibrium price and quantity for homes? Which quantity is affected and why? What should happen in the market for furniture

Reference no: EM132476657

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