The time-series plot in the next column shows the number of new homes built in the Midwest from 2000 to 2009.

(a) Describe how this graph is misleading.
(b) What is the graph trying to convey?
(c) In January 2006, the National Association of Realtors reported, €œA lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling. Along with regulatory tightening on nontraditional mortgages, there will be fewer investors in the market this year.€
Does the graph support this view? Explain why or why not. Do you think the National Association of Realtors was correct in their assessment of the new home market?

Transcribed Image Text:

New Homes Sold in Midwest 225 200 175 150 125 100- 75 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year