Review the following resources:

• Website: S&P Case-Shiller 20-City Home Price Index (SPCS20RSA)

• Website: New One Family Houses Sold: United States (HSN1F)

During the housing crash in 2008, housing prices fell, and the number of new houses sold in the United States also fell. The link to “New One Family Houses Sold” does not include existing house sales, but assume that existing house sales fell as well.

Using the supply and demand analysis,

1. Would the observations of the housing market be explained by a shift of the demand curve, the supply curve, or both?

2. Would the demand and supply increase, decrease or remain the same?