Real Estate Supply and Demand Definitions Quiz
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Questions and Answers

What is the term for the amount of a product or service that is currently available for sale, lease, or trade?

  • Price
  • Demand
  • Real Estate
  • Supply (correct)

What determines the price in real estate according to the text?

  • Oversupply
  • Increase in demand
  • Interaction between supply and demand (correct)
  • Cycle of supply and demand

What happens to prices when there is an increase in supply?

  • Prices remain constant
  • Prices tend to decrease (correct)
  • Prices tend to rise
  • Prices fluctuate randomly

What leads to the construction of additional supply according to the text?

<p>Unfulfilled demand (C)</p> Signup and view all the answers

In real estate, what can result from more supply being added according to the text?

<p>Oversupply (D)</p> Signup and view all the answers

What occurs when demand absorbs the existing supply according to the text?

<p>Market equilibrium (C)</p> Signup and view all the answers

What initiates the cycle of supply and demand anew according to the text?

<p>Unfulfilled demand (D)</p> Signup and view all the answers

What does an increase in vacancy rates signify in the real estate market?

<p>A market that favors buyers/tenants and declining prices/rents (D)</p> Signup and view all the answers

How can merging adjacent properties impact their value?

<p>Create a surplus value called plottage value (C)</p> Signup and view all the answers

What can splitting a single property into smaller units potentially lead to?

<p>Increase in overall worth (A)</p> Signup and view all the answers

How do increases in building permits relate to the real estate market?

<p>Indicate a decline in vacancy, along with increasing prices and construction (C)</p> Signup and view all the answers

What is one factor affecting the supply and demand of real estate?

<p>Accessibility of developable land (B)</p> Signup and view all the answers

Why does the availability of labor force play a vital role in determining market dynamics?

<p>It affects construction costs and project timelines (B)</p> Signup and view all the answers

How can shifts in the economic base affect the demand for real estate?

<p>They can significantly change supply-demand balance (B)</p> Signup and view all the answers

What does a decrease in prices imply in the real estate market?

<p>An increase in demand or decrease in supply, or both (B)</p> Signup and view all the answers

How do local oversight and approval of new development influence the real estate market?

<p>They impact new developments in a locality (A)</p> Signup and view all the answers

What is the term for the amount of buyers and tenants who wish to acquire property for sale or lease in real estate?

<p>Demand (B)</p> Signup and view all the answers

How are prices affected when there is an increase in supply in the real estate market?

<p>Prices tend to decrease (C)</p> Signup and view all the answers

What initiates the construction of additional supply in the real estate market according to the text?

<p>Increase in demand (A)</p> Signup and view all the answers

What can occur if there is an oversupply of properties in the real estate market?

<p>Prices decrease (B)</p> Signup and view all the answers

In real estate, what is the term used for the measurement of the amount of property available for sale or lease?

<p>Supply (B)</p> Signup and view all the answers

What happens when unfulfilled demand leads to construction of additional supply in the real estate market?

<p>Oversupply can occur (D)</p> Signup and view all the answers

How is price determined in the real estate market according to the text?

<p>By the interaction between supply and demand (D)</p> Signup and view all the answers

What occurs when demand absorbs the existing supply in the real estate market?

<p>Prices rise (C)</p> Signup and view all the answers

How can merging adjacent properties impact their value?

<p>Increase the value of individual properties (D)</p> Signup and view all the answers

What does a decrease in building permits indicate in the real estate market?

<p>Decrease in demand for real estate (B)</p> Signup and view all the answers

Why is land availability a crucial factor influencing supply-demand equilibrium?

<p>Limited land availability leads to higher prices and lower demand (C)</p> Signup and view all the answers

How does a decline in local oversight and approval of new development impact the real estate market?

<p>Leads to unregulated development and potential market instability (B)</p> Signup and view all the answers

What initiates the cycle of supply and demand anew according to the text?

<p>Changes in local industries or economies (D)</p> Signup and view all the answers

How do increases in interest rates impact the real estate market?

<p>Decrease demand for real estate (D)</p> Signup and view all the answers

What signifies a market that favors buyers/tenants in terms of vacancy rates?

<p>Increases in vacancy rates (D)</p> Signup and view all the answers

How does local zoning authority influence the real estate market?

<p>By regulating land use and development (B)</p> Signup and view all the answers

What does an increase in prices imply in the real estate market?

<p>Increase in demand or more supply (C)</p> Signup and view all the answers

How can the value of a property be impacted by the values of neighboring properties?

<p>It increases due to the values of neighboring properties (C)</p> Signup and view all the answers

What does the surplus value generated by merging adjacent properties refer to?

<p>Assemblage value (A)</p> Signup and view all the answers

Splitting a single property into smaller units can result in:

<p>Increase in overall worth (C)</p> Signup and view all the answers

What does an increase in building permits typically indicate in the real estate market?

<p>Increase in construction activity (B)</p> Signup and view all the answers

How do shifts in the economic base affect the demand for real estate?

<p>Increase in demand (B)</p> Signup and view all the answers

What is the impact of a decrease in local oversight and approval of new development on the real estate market?

<p>Decreased property prices (A)</p> Signup and view all the answers

Why is land availability considered a crucial factor influencing supply-demand equilibrium?

<p>Land scarcity can drive prices up (C)</p> Signup and view all the answers

What do decreases in building permits usually indicate about the real estate market?

<p>Decreasing construction activity (B)</p> Signup and view all the answers

How do changes in local zoning authority influence the real estate market?

<p>They impact building restrictions and land usage (C)</p> Signup and view all the answers

What does an increase in demand typically lead to in the real estate market?

<p>Rise in prices (C)</p> Signup and view all the answers

In the real estate market, what does oversupply of properties often result in?

<p>Decrease in prices (D)</p> Signup and view all the answers

What signifies a market that favors sellers/landlords in real estate?

<p>Low supply and high demand (A)</p> Signup and view all the answers

How can an increase in supply impact prices in the real estate market?

<p>Decrease in prices (B)</p> Signup and view all the answers

What initiates the construction of additional supply in the real estate market according to the text?

<p>Unmet demand (A)</p> Signup and view all the answers

How do increases in interest rates generally affect the real estate market?

<p>Lower demand for properties (C)</p> Signup and view all the answers

What is the term used for the measurement of the amount of property that individuals desire to purchase or lease at any given moment?

<p>Demand (A)</p> Signup and view all the answers

What happens to prices when there is an increase in demand in the real estate market?

<p>Prices tend to rise (D)</p> Signup and view all the answers

In the real estate market, what typically results from an oversupply of properties?

<p>Oversupply leads to an imbalance and potential price drops (A)</p> Signup and view all the answers

What signifies a market that favors sellers/landlords in real estate?

<p>Increase in demand (A)</p> Signup and view all the answers

How do shifts in the economic base generally affect the demand for real estate?

<p>Increase demand (A)</p> Signup and view all the answers

What initiates the cycle of supply and demand anew according to the text?

<p>Unfulfilled demand leading to additional supply (C)</p> Signup and view all the answers

How can an increase in building permits impact the real estate market?

<p>Lead to an oversupply of properties (B)</p> Signup and view all the answers

What does a decrease in local oversight and approval of new development typically signify for the real estate market?

<p>Potential imbalance and decreased quality standards (C)</p> Signup and view all the answers

How does local zoning authority influence the real estate market?

<p>Shapes land use and development regulations (B)</p> Signup and view all the answers

What can splitting a single property into smaller units potentially lead to?

<p>Increase in overall property value (D)</p> Signup and view all the answers

How can local zoning authority influence the real estate market?

<p>By affecting building permit issuance (A)</p> Signup and view all the answers

What does the surplus value generated by merging adjacent properties refer to?

<p>Plottage value (C)</p> Signup and view all the answers

How do changes in local zoning authority influence the real estate market?

<p>By impacting supply-demand equilibrium (C)</p> Signup and view all the answers

What is one factor affecting the supply and demand of real estate?

<p>Governmental regulations (C)</p> Signup and view all the answers

Why is land availability considered a crucial factor influencing supply-demand equilibrium?

<p>To define market dynamics (D)</p> Signup and view all the answers

In real estate, what is the term used for the measurement of the amount of property available for sale or lease?

<p>Inventory (D)</p> Signup and view all the answers

What do decreases in building permits usually indicate about the real estate market?

<p>Favorable market for buyers/tenants (C)</p> Signup and view all the answers

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