Question: The correct answer is B. The price rises and the quantity demanded increases. Here's why: If sellers expect that the price of houses will be

The correct answer is B. The price rises and the quantity demanded increases. Here's why: If sellers expect that the price of houses will be higher in the future (2024 in this case), they may withhold supply today to sell more in the future at a higher price. This decrease in supply today will lead to an increase in the price of houses today. According to the law of demand, as the price of a good increases, the quantity demanded decreases, ceteris paribus (all other things being equal). However, in this case, the expectation of higher future prices changes the behavior of buyers. Knowing that prices are expected to rise in the future, buyers are more willing to buy at higher prices today to avoid paying even higher prices in the future. Therefore, the quantity demanded increases despite the increase in price. So, the expectation of higher future prices leads to an increase in both the current price and the quantity demanded, which corresponds to option B

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