Housing prices have begun to drop. New home construction has stopped and fewer run-down houses are being repaired. (Use the graphs from the Supply and Demand Guide.)

graph b

Explanation:

The prices of housing have decreased to a certain amount. Furthermore, there is no construction of a new building and the rate of repair of houses is low. This shows that there is a decrease in the demand for housing which results in a corresponding reduction in the price of housing as well as the supply of new housing.