A Newspaper Headline Asserts: "Rising Demand Pushes Up Housing Prices

question 103

Multiple Choice

A newspaper headline asserts: "Rising Demand Pushes Up Housing Prices." This headline

• A)incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change.
• B)incorrectly implies that the price of housing will rise when demand increases.
• C)incorrectly implies that more housing will be demanded at higher prices.
• D)correctly implies that an increase in demand will increase the market clearing price.

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Definitions:

Income Taxes

Taxes levied by a government directly on income, both earned (salaries, wages) and unearned (dividends, interest).

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a certain period of time, indicating the efficiency of inventory management.

Cost Of Goods Sold

The immediate expenses related to manufacturing products sold by a business, which encompass both materials and labor.

Merchandise Inventory

The total value of a company's products that are physically held in stock, awaiting sale to customers.