The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans. Which curve will shift: supply or demand? In which direction will the curve shift: right or left? Briefly explain why this scenario caused this curve shift. What will happen to equilibrium price? What will happen to equilibrium quantity?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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  1. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.
    1. Which curve will shift: supply or demand?
    2. In which direction will the curve shift: right or left?
    3. Briefly explain why this scenario caused this curve shift.
    4. What will happen to equilibrium price?
    5. What will happen to equilibrium quantity?
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