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The real estate agents in Rampville are baffled. Although dwellings are subject to the normal decrease in quality over time, there is no filtering: No household has changed its house in the last 10 years. Provide an explanation for this phenomenon. Use a figure like Figure 14–5 to depict the housing market in Rampville.

Chapter 14, Problem 6

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QUESTION:

Stepladder versus Ramp

The real estate agents in Rampville are baffled. Although dwellings are subject to the normal decrease in quality over time, there is no filtering: No household has changed its house in the last 10 years. Provide an explanation for this phenomenon. Use a figure like Figure 14–5 to depict the housing market in Rampville.

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QUESTION:

Stepladder versus Ramp

The real estate agents in Rampville are baffled. Although dwellings are subject to the normal decrease in quality over time, there is no filtering: No household has changed its house in the last 10 years. Provide an explanation for this phenomenon. Use a figure like Figure 14–5 to depict the housing market in Rampville.

ANSWER:

Step 1 of 4

Given:- Since no household has moved in the past ten years, homes are susceptible to the natural deterioration in quality over time.

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