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2. Suppose people who are thinking about buying a home (demanders in the housing market) and current home owners who are thin
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a. This change in expectations cause the demand curve for housing this year to shift to the right because people would like to buy the good this year as this year's price will be lower than next year's price.
b. This change in expectations cause the supply curve for housing this year to shift to the left as sellers would want to sell houses next year at higher price.
c. These shifts in the demand and supply curves lead to an increase in the price of housing this year.
Price Quantity of houses.

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