=+6.9 Everyday Application: Price Fluctuations in the Housing Market: Suppose you have $400,000 to spend on a house and “other goods” (denominated in dollars).

A. The price of 1 square foot of housing is $100, and you choose to purchase your optimally sized house at 2,000 square feet. Assume throughout that you spend money on housing solely for its consumption value (and not as part of your investment strategy).