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    Demand and Supply Analysis

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    Use demand and supply analysis with this statement:
    The economy is doing well in 2000. Income was rising and the stock market hit new record highs. As a result, the price of housing rose.

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    Solution Preview

    Please see the attached file.

    <br>As income and stock prices rise the demand for houses shifts to the right (quantity demanded increases for each given price) for the following reasons:
    <br>- An increase in income or an increase in stock portfolio valuation allows people to take out a mortgage and make mortgage ...

    Solution Summary

    This solution uses demand and supply analysis on a statement regarding rising income and housing prices.