McKissock - Basic Appraisal Principles- GA Ch.9 with verified solutions.

The principle of supply and demand states that the price of a commodity varies ________ with demand. proportionately directly independently none of the above directly According to the principle of supply and demand, the price of a commodity varies ___________ with supply. proportionately independently inversely none of the above inversely Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:00 Full screen Which type of market is MOST likely to be characterized by higher prices and a shortage of homes for sale? buyer's market seller's market efficient market depressed market seller's market In real property, a market is defined in terms of political boundaries competition state lines man-made physical boundaries, like railroad tracks and highways competition "The area associated with a subject property that contains its direct competition" is the definition of subdivision plat market study market area district market area True or False? Real property is typically purchased with cash. False Because real estate is immobile, it is sensitive to nearby influences easy to sell impossible to foreclose on typically purchased by cash buyers sensitive to nearby influences What is the supply of real estate in a market? number of buyers number of sellers - number of buyers the existing stock of parcels of real estate number of vacancies the existing stock of parcels of real estate When supply and demand are out of balance, they tend to move towards the demand side equilibrium the supply side higher prices equilibrium Which is NOT an example of a long-term trend? availability of mortgages the Great Depression emigration to the South and West post World War II construction availability of mortgages The principle of supply and demand states, in part, that the price of real property varies directly with ________ and inversely with __________. supply, demand demand, supply supply, competition contraction, competition demand, supply Real property is unique as an economic good in that it is immovable impossible to finance stably priced homogeneous immovable "A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises" is the definition of neighborhood district market area market market area "A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices" is the definition of a(n) ____________ market. depressed seller's active none of the above depressed "A market in which buyers have the advantage; exists when market prices are relatively low due to an oversupply of property or reduced buyer demand" is the definition of a(n) ___________ market. buyer's seller's active depressed buyer's "A market characterized by numerous transactions." is the definition of a(n) _________ market. buyer's seller's active depressed active A problem with the real property market is that the amount of _______ is slow to change. supply demand supply and demand new customers supply and demand Which is usually larger? neighborhood district village market area market area All the following are characteristics of a good market EXCEPT prices are stable small number of buyers and sellers buyers and sellers act rationally little regulation small number of buyers and sellers "A set of arrangements in which buyers and sellers are brought together through the price mechanism; the aggregate of possible buyers and sellers and the transactions between them." is the definition of a market marketing area sub-market neighborhood market "A market in which product differentiation exists, there is a lack of important product or market information, and some of the producers and/or consumers are significant enough to affect the price and quantity of goods by their actions alone" is the definition of a(n) ____________ market. perfect distressed imperfect buyer's imperfect The real property market is generally classified as a(n) ______________market. perfect imperfect segregated distressed imperfect