Assume That There Has Been an Increase in the Marginal

Multiple Choice

Assume that there has been an increase in the marginal productivity of construction workers building new housing. How might this affect the market for new housing?

A) Demand for new housing will rise, leading to an increase in the equilibrium price and quantity of new housing.
B) Supply of new housing will rise, leading to an increase in the equilibrium quantity and decrease in the price of new housing.
C) Demand for new housing will fall, leading to a decrease in the equilibrium price and quantity of new housing.
D) Supply of new housing will fall, leading to an increase in the equilibrium price and decrease in the quantity of new housing.