If we assume that mortgage interest rates and all other


In 1987 the average price of a home rose from $97,000 in April to $106,800 in May. During the same period home sales fell from 724,000 to 616,000 units. If we assume that mortgage interest rates and all other factors affecting home sales are constant, what do these figures suggest about the elasticity of demand for housing? Using the information calculate the elasticity for housing.

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Business Economics: If we assume that mortgage interest rates and all other
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