1)Say the average price of a new home in Lampard City is $160,000. The local government has just passed new licensing requirements for housing contractors. Based on possible shifts in demand or supply and assuming that the licensing changes don't affect the quality of new houses, which of the following is a reasonable prediction for the average price of a new home in the future?

)a) $140,000

b)$150,000

C)$160,000

d)$170,000

2)Suppose a new employer is also relocating to Lampard City and will be attracting many new people who will want to buy new houses. Assume that the change in licensing requirements mentioned in part a) occurs at the same time. What do you think will happen to the equilibrium quantity of new homes bought and sold in Lampard City?

a) It will decrease substantially

b)It will decrease but not by much

c)It will increase

d) Not enough information