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Demand determinants and Supply determinants

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According to the Federal Housing Finance Agency house price index, U.S. housing prices declined throughout 2008 and 2009. What are two demand determinants and two supply determinants that might explain the broad decline in house prices that occurred in those years? Is the market currently in equilibrium?

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According to the Federal Housing Finance Agency house price index, U.S. housing prices declined throughout 2008 and 2009. What are two demand determinants and two supply determinants that might explain the broad decline in house prices that occurred in those years? Is the market currently in equilibrium?

Alright, so first we need to figure out what the determinants of supply/demand are in order to answer this question.

Determinants of Demand:
- change in consumer tastes
- change in the number of buyers
- change in consumer incomes
- change in the prices of complementary and substitute goods
- change in consumer ...

Solution Summary

Demand and supply determinants are examined. The price that has occurred in those years are determined.

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