Homebuilders will often pay the closing costs (title, insurance, etc.) of prospective homebuyers? Explain in terms of supply and demand what homebuilders are trying to do with this practice
What will be an ideal response?
The homebuilders are simply trying to stimulate demand. By offering to pay prospective homebuyers' closing cost it is almost the equivalent of handing these buyers extra income. Their ability and willingness to pay has increased. It can bring buyers into the market who would able to afford to buy a home except for the obstacle of having to come up with the cash for closing costs.
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If it is possible to make a change that will help some people without harming others, then the situation is:
A. efficient. B. inefficient. C. unfair. D. fair.
Compare a football quarterback’s daily and yearly completed pass percentage to a business’s marginal and average product.
What will be an ideal response?
Government debt increases the interest rate and private investment
Indicate whether the statement is true or false
The market demand is the:
a. sum of all individual demand curves in a market. b. sum of all individual prices in a market. c. sum of all individual demand curves and supplies in a market. d. vertical sum of all individual demand curves.