Consider the market for new residential houses in the Richmond metropolitan area. If the local economy "booms" and consumer incomes rise. All else constant, we would expect

Consider the market for new residential houses in the Richmond metropolitan area. If the local economy "booms" and consumer incomes rise. All else constant, we would expect

demand to increase and the average home price to decrease

supply to increase and the average home price to increase

supply to increase and the average home price to decrease

demand to increase and the average home price to rise