1) Do you see any contradiction between these two statements? Using demand and supply theory of price determination, please explain.

a)  After the financial crisis of 2007-08, the price of houses was falling. As the economy is growing in recent years, many people are buying houses, which is leading to increase in price
of houses.
b) As the price of houses is increasing people are buying fewer houses.

2) Which of the two statements does represent the law of demand.

Answer rating: 100% (QA)

Yes there seems to be a contradiction between the two statements Statement b repr... View the full answer