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A variable mortgage rate in Canada in 2021 was 2.15%, in June of 2022 it was 2.9%. Over the same time, house sales fell by

A variable mortgage rate in Canada in 2021 was 2.15%, in June of 2022 it was 2.9%. Over the same time, house sales fell by 23.9% (https://handsonhomebuyer.com/home-sales-prices-fall-as-interest-rates-rise/).

Calculate the elasticity of demand for houses with respect to interest rates.[1] What does your result tell us? [2]

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