Final answer:
Builders are the supply factor affecting real estate in the given options. Option a
Step-by-step explanation:
The supply factor affecting real estate among the options provided would be a) Builders. This is because builders are directly involved in the construction and supply of new homes, which in turn affects the real estate market's inventory levels. Immigration and migration, household formation, and economics are more closely related to demand factors.
Analysis of economic changes and their impact on home loans:
a. Increase in the number of home-buyers: An increase in the number of people at the most common ages for home-buying would likely lead to an increase in the demand for home loans. This demand shift would generally increase the equilibrium price and quantity of home loans, shown as a rightward shift in the demand curve on a supply and demand diagram.
b. Economic growth and job security: Confidence in a growing economy and job security would similarly increase the demand for home loans as more individuals are willing to make large purchases like homes. This would also result in a higher equilibrium price and quantity in the financial market for home loans.
c. High default rates on home loans: If banks experience higher than expected default rates, they may become more cautious in lending. This could lead to a decrease in the supply of home loans, shifting the supply curve to the left and potentially raising the interest rates while lowering the equilibrium quantity. option a