Use the Following Diagram to Answer the Following Questions

question 82

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Unit. If the price of housing is currently $80,000 per unit there will be:

• A) an excess demand of 20,000 units.
• B) an excess demand of 10,000 units.
• C) an excess supply of 20,000 units.
• D) an excess supply of 30,000 units.

---

Definitions:

T-bill Rate

The interest rate earned by investors in U.S. Treasury bills, which are short-term government securities.

Out-of-the-money

Describes an option that would not make money if it were exercised immediately because its strike price is not favorable compared to the current market price of the underlying asset.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamental analysis rather than current market price.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and no tendency for change.