What Drawbacks Might a Co-Op Have Over a House for a Family

question 2

Multiple Choice

What drawbacks might a co-op have over a house for a family of eight who are relocating to a new area and need to purchase a home?

• A)More expensive to purchase
• B)More expensive to operate and maintain
• C)Less freedom to make changes and less privacy
• D)No ownership of shares in the corporation

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market.

Supply and Demand

The basic economic principle that determines the price of goods and services in a market, based on the quantity available (supply) and the desire of consumers to purchase (demand).

Demand Curve

A visual model that illustrates the link between the cost of a commodity and the volume of demand from buyers at those costs.

Secondary Market

A marketplace where investors buy and sell securities, such as stocks and bonds, from other investors rather than from issuing companies directly.