=+7.6 Everyday Application: Housing Price Fluctuations: Part 2: Suppose, as in end-of-chapter exercise 6.9, you have $400,000

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=+7.6 Everyday Application: Housing Price Fluctuations: Part 2: Suppose, as in end-of-chapter exercise 6.9, you have $400,000 to spend on “square feet of housing” and “all other goods.” Assume the same is true for me.

A. Suppose again that you initially face a $100 per square foot price for housing, and you choose to buy a 2,000-square-foot house.

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