Supply & Demand Assignment 2

The market is for houses. Graph the changes to the market listed below. Show the

impact of each change on the price and quantity of houses in California.

1.

Prices of lumber and concrete fall

.

2.

New

Condominiums falling in price.

3.

Price ceiling placed on all new houses built in California

.

4.

Incomes for many in California continue to rise.

5.

Three of the largest builders in the state shut down.

6.

Government establishes a price floor on al

l houses sold

.