Question

The characteristics of home demand for a firm's products or services include all of the following except:

A) the composition of home demand.
B) the size of the home demand.
C) pattern of the growth of the home demand.
D) means by which the home demand pushes or pulls foreign markets.
E) the size of the competitors share of the home demand.

Answer 1

Factors affecting demand for home loans include changes in the number of people at home-buying ages, confidence in the economy, and loan repayment issues.

Step-by-step explanation:

Factors affecting demand include tastes and preferences, income, prices of related goods, and the size or composition of the population.

If the number of people at the most common ages for home-buying increases, it will result in an increase in demand for home loans, leading to an increase in equilibrium price and quantity.

If people gain confidence that the economy is growing and that their jobs are secure, it will also lead to an increase in demand for home loans, resulting in an increase in equilibrium price and quantity.

However, if banks that have made home loans find that a larger number of people than they expected are not repaying those loans, it will lead to a decrease in demand for home loans, resulting in a decrease in equilibrium price and quantity.