When prices for homes rise, why might construction companies decide to build more homes? to increase employment to make profit to create a need for more resources to boost name recognition

The answer is likely "To make a profit." I'm not 100% sure, but I know that it is not C, "To create a need for more resources," I got that one wrong on my quiz. I'm fairly certain that A & D are not the correct answers either. I would say answer B is a safe bet.

Tell me if this helps, thanks! :)

To create a need for more resources

Further Explanation:

Macroeconomics is the branch of economics that studies how the economy works. The Market operates on a larger scale. It studies the wider phenomena like inflation, national income, economic growth and changes in an unemployment. The main question which Macroeconomics addresses: what are the causes of unemployment, what are the causes of inflation, what stimulates economic growth. It attempts to measure the performance of the economy and how it can be improved. Microeconomics deals with focused choices made by the individual like households, industries. The construction companies make more houses so that resources are increased, prices fell and more people buy the house. This is an absolute case of demand and supply. When demand rises and supply is fewer price increases. If Demand is less and supply is more, then price decreases. There needs to be equilibrium between the demand and supply for the effective functioning of the market economy. If there is the availability of more houses, prices will be moderate and people will have the affordable to buy the house. In the other way, it also creates employment opportunities for the people and the construction company will have more earn more profit.

Learn More:

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Answer Details:

Grade: High School

Subject: Social Science

Chapter: Macroeconomics

Keywords:

Inflation, national income, economic growth, unemployment, performance, demand, supply, profit

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