The Value of Caroline's House Decreased from $75,500 to $69,500

question 313

Multiple Choice

The value of Caroline's house decreased from $75,500 to $69,500 when the area's major employer closed the local plant and moved to another state. Find the percent decrease in the value of her house. Round to the nearest tenth of a percent if necessary.

• A) 8%
• B) 6%
• C) 9%
• D) 7%
• E) 1%

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Definitions:

Product Markets

Markets where goods and services are bought and sold, connecting buyers and sellers.

Households

Economic units consisting of all individuals living in a single residence, making decisions about consumption, savings, and investment.

Business Inputs

Goods or services that are used in the production process of other goods or services, including raw materials, components, and labour.

Command Economy

An economic system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which goods will be offered for sale.