A Newspaper Headline Asserts: "Rising Demand Pushes Up Housing Prices

question 103

Multiple Choice

A newspaper headline asserts: "Rising Demand Pushes Up Housing Prices." This headline

• A)incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change.
• B)incorrectly implies that the price of housing will rise when demand increases.
• C)incorrectly implies that more housing will be demanded at higher prices.
• D)correctly implies that an increase in demand will increase the market clearing price.

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Definitions:

False Dichotomy

A logical fallacy that presents two opposing options as the only possibilities, when in fact more options may exist.

Appeal to Popularity

The appeal to popularity is a logical fallacy that suggests something is true, good, or desirable simply because it is popular or widely accepted by many people.

Complexity

The state or quality of being intricate or complicated.

Overconfidence

The psychological condition of having excessive confidence in one's own abilities or outcomes, often leading to mistakes.