If the Number of Buyers in the Housing Market Decreases

question 113

Multiple Choice

If the number of buyers in the housing market decreases, what will happen?

• A) Demand in the market will increase.
• B) Demand in the market will decrease.
• C) Supply in the market will increase.
• D) Supply in the market will decrease.

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Definitions:

CCA Class

Refers to the classification system for capital cost allowance purposes in Canada, determining the rate at which assets can be depreciated for tax purposes.

Marginal Tax Bracket

The tax rate that applies to the final dollar of taxable income for a person or organization.

Erosion Cost

Costs that occur when a new project or investment negatively affects the revenues or profits of existing projects.

Expansion Project

Initiatives undertaken by a company to increase its existing operations' capacity or to venture into new markets or products.