Question

Charlize is monitoring market indicators in a particular area for her client who wants to buy an oceanfront home. Which market indicator will tell her how much prices have fluctuated in the area over the past two years?

Answer 1

Answer:

Price levels

Explanation:

Price level is an indicator that is obtained by getting the average price of goods that are produced within an economy or an industry.

When prices rise it indicates that demand for a good is on the rise and eventually an inflation may result. When price falls demand has reduced and deflation may result.

In the given scenario price level is the best indicator to show how prices of properties in the area have fluctuated.

It will also give insight into how good a property purchase will be.