Lesson 1.4

Question 1

Market

Answer 1

A place where goods can be bought and sold

Question 2

Supply and Demand

Answer 2

Establishes Prices for goods and services in the market

Question 3

Supply

Answer 3

Quantity of goods and services that can be sold at a given price

In Real Estate: supply is made up of residential and commercial land and structures

Question 4

Demand

Answer 4

Quantity of goods and services that consumers are willing and able to buy at a given price

In Real Estate: number of homebuyers and businesses seeking to buy property can vary greatly; depends on general economic conditions

Question 5

Uniqueness and Immobility

Answer 5

Two characteristics of real estate that govern the way the market reacts to the pressures of supply and demand

Question 6

Uniqueness

Answer 6

No two parcels of real estate are every exactly alike

Question 7

Immobility

Answer 7

Property cannot be relocated to satisfy demand where supply is low, nor can buyers always relocate to areas with greater supply

Question 8

Factors that effect Supply

Answer 8

Labor force availability

Construction and material costs

Governmental controls

Financial policies

Question 9

Demand

Answer 9

Population

Demographics

Employment and Wage levels