Are the following two observations​ inconsistent?

a. Rising demand for housing causes prices of new homes to soar.
b. Many families refuse to buy homes as prices become prohibitive for them.
The observations are
A.
consistent because both of them apply to movements along the demand curve.
B.
inconsistent because due to rising demand prices will become too high and no one will be buying homes.
C.
consistent because rising demand will shift the demand curve and higher prices will cause movement along the demand curve.
D.
inconsistent because in the first one the demand increases and in the second one the demand decreases due to higher prices.

1 answer

D.
inconsistent because in the first observation the demand increases and in the second observation the demand decreases due to higher prices.