What would be the effect on the price of homes in houseville

Reference no: EM13968219

What would be the effect of the following on the price of homes in Houseville :

1.Houseville has just won an award for the most livable city in the United States. The publicity causes the demand curve for housing to shift rightward by 5,000 this year.

2.An eartquake destroys 1,000 homes in Houseville, There is no effect on the demand for housing and the city council continues to allow only 2,000 new homes to be built during the year.

Reference no: EM13968219

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