Perry Real Estate College - National Practice Tests 6-10 Exam Guide Pre-Licensing Course, National Exam Prep eBook

Perry Real Estate College - National Practice Tests 6-10 Exam Guide Pre-Licensing Course, National Exam Prep eBook NATIONAL TEST 6: Economics; Appraisal 6.1 If the price of an item is increasing, one can usually assume that a. demand for the item is decreasing in relation to supply of the item. b. demand for the item is increasing in relation to supply of the item. c. supply of the item is increasing. d. demand for the item and supply of the item are increasing. - -6.1 (b) demand for the item is increasing in relation to supply of the item. In a market economy, the primary interactions between supply, demand and price are: if supply increases relative to demand, price decreases; if supply decreases relative to demand, price increases; if demand increases relative to supply, price increases; and if demand decreases relative to supply, price decreases. 6.2 When the market for an item has achieved market equilibrium, which of the following statements is true? a. New suppliers will enter the market and drive the price down. b. Demand will slowly taper off, driving the price down. c. Unmet demand for the item is directed toward demand for some other item. d. Supply and demand are equal, and price and value are equal. - ....