Biology Forums - Study Force

Suppose that the average price of a new home in Hometown is $150,000. If the demand for new homes increases,
A) there will be a permanent shortage of new homes at the $150,000 price.
B) there will be a temporary shortage of new homes at the $150,000 price. The shortage will be eliminated when competition between suppliers raises the equilibrium price.
C) there will be a permanent surplus of new homes at the $150,000 price.
D) there will be a temporary surplus of new homes at the $150,000 price. The surplus will be eliminated when competition between suppliers lowers the equilibrium price.
E) there will be a temporary shortage of new homes at the $150,000 price. The shortage will be eliminated when competition between consumers raises the equilibrium price.

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This business course was seriously killing me