January class) Read the article "Covid.19 caused a recession.So why did the housing market boom?" and answer the following questions.You are welcome to write or type your answers. Should you choose to write your responses, please do so legibly. 1. Identify at least two factors that led to a shift in the demand curve for housing during the pandemic. For each factor, briefly explain why/how this affects demand. Oconsumer income

##Step1: Identify Factors Affecting Housing Demand<br />###During the pandemic, several factors led to a shift in the demand curve for housing. One key factor was consumer income. Despite the recession, many consumers experienced stable or increased incomes due to government stimulus checks and enhanced unemployment benefits. This increase in disposable income allowed more people to afford home purchases, thus increasing demand.<br /><br />##Step2: Analyze Impact of Consumer Income on Demand<br />###Consumer income affects demand because higher disposable income increases purchasing power. With more money available, consumers are more likely to invest in housing, leading to a rightward shift in the demand curve. This is consistent with the concept that an increase in consumer wealth or income can boost consumption, including durable goods like houses.<br /><br />##Step3: Identify Second Factor Affecting Housing Demand<br />###Another factor was the historically low interest rates during the pandemic. The Federal Reserve lowered interest rates to stimulate the economy, making borrowing cheaper. Lower mortgage rates reduced the cost of financing a home, encouraging more buyers to enter the market and further shifting the demand curve to the right.<br /><br />##Step4: Analyze Impact of Low Interest Rates on Demand<br />###Low interest rates decrease the cost of borrowing, making it more affordable for consumers to take out mortgages. This incentivizes home buying, as lower monthly payments make homes more accessible to a larger segment of the population. Consequently, this leads to an increase in housing demand.<br /><br />#