Question

Which two of the following scenarios could result in higher market prices for an investment? There are not enough sellers in the housing market, so the supply of potential homes to buy is low. Investment experts have advised against buying a particular company's stock. A company has reported record profits for this year. There is a low demand for gold in the market. Economic conditions have worsened.

Answer 1

Scarcity of homes in the housing market and a company's record profits can result in higher market prices for an investment.

Step-by-step explanation:

The two scenarios that could result in higher market prices for an investment are:

1. The supply of potential homes to buy is low in the housing market due to not enough sellers. This scarcity of homes can drive up prices as demand exceeds supply.
2. A company has reported record profits for this year. When a company demonstrates strong financial performance, it can attract more investors which can drive up the demand for the company's stock and potentially increase its market price.