When You Decide to Buy a Home,which of These Questions

question 10

Multiple Choice

When you decide to buy a home,which of these questions should be answered?

• A)What is the maximum amount that a bank will lend me?
• B)Should I borrow up to this maximum?
• C)How big of a down payment can I afford?
• D)All of the above

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Definitions:

Substitute Goods

These are goods that can be used in place of one another, such that the increase in price of one leads to an increase in demand for the other.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Demand

The desire and willingness of consumers to purchase goods or services at a given price level.

Supply

The total amount of a product or service that is available to consumers at a given price point and time.