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:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for financial reporting.

Noncash Consideration

Payment made in a form other than cash, such as property, goods, or services, during transactions.

Dividends Payable

Refers to the amount of dividends that a company has declared to pay out to its shareholders but has not yet distributed.

Dividends Declared

The portion of a company's earnings that is approved by the board of directors to be distributed to shareholders.