Question

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et/quiz?quiz_action-takeQuiz&quiz probGuid QNAPCOA801010000004915dd400eooo&ctx-kearlsoh-U Aa Aa .Asset prices and expectations The following graph shows the market for commercial buldings in Loulslana. Suppose that an influx of well-educated and modestly paid workers move into the state, which leads to a better business climate for Loulslana. Show the Impact that this will have on the market for commercial buildings In Loulsiana by shifting one or both curves in the graph. Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if you try to move the curve and It snaps back to its original position, Just try again and drag it a little farther. PRICE eDollars) QUANTITY ICommercial Buildings) The change described above will cause the price of commercial buildings in Louisiana to fall remain constant rise fal the statements in the following table provides evidence to support or cast doubt on the efficient markets hypothesis. MacBook Air

Answer 1

1. The change described above will cause the price of commercial buildings in Louisiana to rise. With the increase in the population of well-educated migrants in the city, there will be a growth in economic development. This will result in an expansion of the business sector which will result in demands for more offices and workspaces hence increasing the prices of the commercial buildings.

2. a) supports EMH, b) casts doubt on EMH