Evaluate the impact on the housing market if a
natural disaster causes an inward (leftward) shift
in the supply curve for housing, assuming
demand remains constant. What is the most
likely outcome?
An increase in equilibrium quantity demanded, but
a decrease in equilibrium price.
An increase in equilibrium price, but a decrease in
equilibrium quantity demanded.
An increase in both equilibrium price and
equilibrium quantity demanded.
A decrease in both equilibrium price and
equilibrium quantity demanded.