7
QuizMultiple Choice

Unit Test — Unit test

Question 7 • * HSA 26-27 Economics

When prices for homes rise, why might construction companies decide to build more homes?

Answer
A
to increase employment
B
to make a profit
C
to create a need for more resources
D
to boost name recognition

Explanation

When home prices rise, builders can often sell new homes for more, making construction more profitable. The prospect of earning a profit gives companies a reason to build more homes. Increasing employment or name recognition may happen, but they are not the main economic incentive.

AI-written and checked against the verified answer.

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