Suppose over the next several years the level of income and wealth falls in Israel because of the current war. For Israel's home-rental market we would observe: Less demand, less supply, and an increase in the quantity of homes rented in the new market equilibrium condition. Lower prices that are created by a decrease in supply. A decrease in the quantity of houses supplied as demand decreases. A decrease in the quantity of houses supplied as quantity demand decreases. Price gouging in this market would be rampant.

Suppose over the next several years the level of income and wealth falls in Israel because of the current war. For Israel's home-rental market we would observe: Less demand, less supply, and an increase in the quantity of homes rented in the new market equilibrium condition. Lower prices that are created by a decrease in supply. A decrease in the quantity of houses supplied as demand decreases. A decrease in the quantity of houses supplied as quantity demand decreases. Price gouging in this market would be rampant.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose over the next several years the level of income and wealth falls in Israel because of the current war. For Israel's
home-rental market we would observe:
Less demand, less supply, and an increase in the quantity of homes rented in the new market equilibrium condition.
Lower prices that are created by a decrease in supply.
A decrease in the quantity of houses supplied as demand decreases.
A decrease in the quantity of houses supplied as quantity demand decreases. Price gouging in this market would be
rampant.

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