In Some Markets It May Take Many Months to Sell

question 65

Multiple Choice

In some markets it may take many months to sell a residential property. This is an example of

• A) business risk.
• B) credit risk.
• C) market risk.
• D) liquidity risk.

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Definitions:

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or service, resulting in increased prices and reduced quantity.

Prices

The amount of money required to purchase a good, service, or asset, often influenced by supply and demand.

Short-run

A period in which at least one factor of production is fixed, limiting the ability of a business to fully adjust to market changes.

Short-run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period at current prices.