Which of the Following Is Not True About the Housing

question 22

Multiple Choice

Which of the following is not true about the housing market?

• A) The price of housing will increase or decrease in order to achieve an equilibrium
• B) An increase in the demand for housing will cause an increase in the quantity supplied of housing
• C) When the demand for housing increases,the price of housing will increase but the quantity supplied will not increase in the short run
• D) The housing market is a unique market because most people had to borrow money to buy their homes
• E) The only way to increase the supply of housing is to build more houses

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Definitions:

Stock Price

Stock price is the cost of purchasing a share of a company's stock, reflecting the market's valuation of the company at any given time.

Hedge Ratios

Ratios used to optimize hedging strategies by comparing the quantity of a position protected against the total position size.

Long Call Positions

An investment strategy where an investor buys call options to profit from an anticipated increase in the price of the underlying asset.

Long Put Positions

An investment strategy where an investor purchases put options betting that the underlying asset will decrease in value.