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TiliK225 [7]
3 years ago
13

In a housing market, under what conditions would you likely see and increase in developer construction? Why?

Business
1 answer:
madreJ [45]3 years ago
4 0

Answer:

<u>Increase in demand, then increase in prices</u>

Explanation:

Note that the law of demand and supply also applies to the housing market.

Thus when developers notice increase in the demand for houses; leading to an increase in prices for houses, this necessitates the increase in developer construction so as<em> to make more profit.</em>

Remember, this developers likely had undeveloped land they bought for some time, and so its an opportunity to reap more investments.

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Here cash and sales discount is debited as it increased the assets and discount while on the other hand the account receivable should be credited as it reduced the assets  

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