Which of the Following Is an Example of Speculative Demand

question 8

Multiple Choice

Which of the following is an example of speculative demand?

• A) When the actual price of housing increases, the quantity demanded of housing decreases.
• B) When the expected price of housing increases, the demand for housing increases.
• C) When the price of home ownership increases, the demand for rental housing increases.
• D) When the demand for housing increases, the demand for house insurance increases.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource, such as labor.

Productivity

The measure of efficiency in converting inputs into useful outputs in production.

Input Demand Curves

Graphical representations that show the quantity of inputs a firm demands at different input prices.

Rent

Payment, typically made monthly, for the use of land, a building, an apartment, an office, or other property.