Question 19 (7 points)
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As the coronavirus pandemic eased and the Fed began raising interest rates, the price of
mortgaging a home rose, and the demand for homes decreased. In the housing market, price
acted as a(n):
a) incentive, because higher interest rates raised the opportunity cost of buying a home.
b) incentive, because the decreased demand raised the quantity of houses sold.
c) message, because it revealed that home buyers' marginal benefit had risen.
d) message, because home sellers were willing to sell their homes regardless of price.
Question 20 (7 points)
