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If the Supply Curve for Housing Is Perfectly Inelastic, Then

Question 21

Multiple Choice

If the supply curve for housing is perfectly inelastic, then a reduction in demand will cause the equilibrium price to:


A) rise and the equilibrium quantity to fall.
B) rise and the equilibrium quantity to stay the same.
C) fall and the equilibrium quantity to fall.
D) fall and the equilibrium quantity to stay the same.

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