Which of the Following Sets of Events Must Cause an Increase

question 31

Multiple Choice

Which of the following sets of events must cause an increase in the price of a new house?

• A)higher wages for carpenters,higher wood prices,increases in consumer incomes,higher apartment rents,increases in population,and expectations of higher house prices in the future
• B)lower wages for carpenters,lower wood prices,increases in consumer incomes,higher apartment rents,increases in population and expectations of higher house prices in the future
• C)lower wages for carpenters,higher wood prices,decreases in consumer incomes,higher apartment rents,decreases in population and expectations of higher house prices in the future
• D)higher wages for carpenters,lower wood prices,decreases in consumer incomes,lower apartment rents,decreases in population and expectations of lower house prices in the future

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Definitions:

Taxable Entity

A taxable entity refers to any individual, business, or organization that is subject to tax by governments.

Business Organization

The structure by which a business is organized and operated, which can range from sole proprietorships to corporations.

Going-Concern Principle

The assumption that a company will continue to operate in the foreseeable future, not planning to liquidate or cease operations.

Asset Values

The worth of a company's assets, determined by factors like cost, depreciation, and market value.