The Subject of an Appraisal Has Only Two Bedrooms, but One

question 11

Multiple Choice

The subject of an appraisal has only two bedrooms, but one of the comparables used in the appraisal has three. If the adjustment for a third bedroom is $5,000, the adjustment would be:

• A) A $5,000 increase to the comparable's selling price
• B) A $5,000 decrease to the comparable's selling price
• C) A $5,000 increase to the subject's selling price
• D) A $5,000 decrease to the subject's selling price.

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Definitions:

Monopoly Power

The ability of a single seller in a market to control prices and exclude competition.

Sherman Act

A landmark federal statute in the antitrust law of the United States, passed in 1890, which prohibits certain business activities that federal government regulators deem to be anti-competitive.

Alcoa Case

A 1945 case in which the courts ruled that the possession of monopoly power, no matter how reasonably that power had been used, was a violation of the antitrust laws; temporarily overturned the rule of reason applied in the U.S. Steel case.