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:

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.

Cash Coverage Ratio

A financial metric that measures a company’s ability to cover its debt obligations with its operating cash flow.

Total Asset

The sum of all assets owned by a company, including both current and non-current assets.

Turnover Measure

An indicator of the efficiency and effectiveness of a company in generating revenue or managing inventory, often expressed as a ratio.