Analyzing Household Vulnerability to Market Shocks
The table below shows the initial financing details for four different households. Assume that shortly after these purchases, the housing market experiences a uniform 10% decline in property values.
| Household | Initial House Value | Down Payment (%) |
|---|---|---|
| A | $300,000 | 5% |
| B | $300,000 | 20% |
| C | $500,000 | 20% |
| D | $500,000 | 50% |
Based on this scenario, identify which household's equity is entirely eliminated (or becomes negative) and explain why their specific financing structure caused this outcome.
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