Final answer:
Blockbusting is the practice of inducing homeowners to sell property by instilling fear that the entry of minority groups into the area will decrease property values, which speculators used to profit by buying low and selling high. The correct answer is option: b. blockbusting.
Step-by-step explanation:
Inducing persons to list or sell by the fear that minority groups entering the area will decrease property values is known as blockbusting. This practice involved real-estate agents and speculators playing on white fears by suggesting the entrance of a minority family into an all-white neighborhood would devalue the homes, a technique designed to trigger white flight. This unethical strategy enabled speculators to buy homes at deflated prices, which they would then sell or rent to minorities at inflated prices.
Blockbusting, along with redlining and steering, was a discriminatory practice that contributed to the segregation of neighborhoods and the overall housing market in the United States. Blockbusting specifically manipulated racial prejudices and fears to alter property values and the demographic makeup of neighborhoods, causing both social and economic harm to communities.