The Foreclosure Crisis Has Been Particularly Devastating in Housing Markets

question 63

Multiple Choice

The foreclosure crisis has been particularly devastating in housing markets in much of the south and west United States,but even when analysis is restricted to relatively strong housing markets the numbers are staggering.For example,in 2011 an average of three residential properties were auctioned off each weekday in the city of Boston,up from an average of one per week in 2005.What is the probability that at least one foreclosure auction occurred in Boston on a randomly selected weekday of 2011?

• A) 0.0498
• B) 0.1494
• C) 0.8009
• D) 0.9502

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.

Quantity Sold

The total number of units of a product or service that have been purchased in a given period.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.