Buying Your Own Home Is Often Mentioned as "The Best

question 97

Multiple Choice

Buying your own home is often mentioned as "the best investment you can make." In 1964,the average home sale price was $19,600.By 2009,the average home sale price had risen to $272,900.What was the average annual rate of change in the price of houses over this 45 year time period?

• A)3.74% per year
• B)6.03% per year
• C)10.52% per year
• D)12.16% per year

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Definitions:

Skimming Pricing

A pricing strategy involving setting high prices initially to target consumers who are willing to pay more for new or unique products.

Innovative Product

A new or significantly improved product that meets unique customer needs or opens up new markets.

High Initial Price

A pricing strategy where a new product is introduced to the market with a relatively high price point in order to maximize revenues from early adopters.

Skimming Pricing Strategy

A pricing strategy that involves setting high prices initially to target early adopters and then lowering the price over time.