According to hedonic analysis, a person's willingness to pay for a house is most likely to depend on:
A) the number of rooms in the house.
B) the rate of interest for bank loans.
C) the inflation level in the economy.
D) the elasticity of supply of houses.

Question

Quizplus · Accepted Answer

Hedonic analysis in real estate evaluates the price of a property based on its characteristics, such as the number of rooms, rather than external economic factors like interest rates, inflation, or supply elasticity.

According to Hedonic Analysis, a Person's Willingness to Pay for a House