A surge in housing prices followed by dramatic decreases in housing prices is an example of

Question

Quizplus · Accepted Answer

A surge in housing prices that is not based on actual market demand, but rather speculation and investor hype, can lead to a bubble. Bubbles eventually burst when investors realize that the prices are not sustainable, leading to a dramatic decrease in housing prices. This cycle of rapid inflation and subsequent deflation is often referred to as a housing market bubble. Collective exploitation and collective engagement are not applicable to this situation. A bull market refers to an extended period of rising prices across the entire market, not just housing.

A Surge in Housing Prices Followed by Dramatic Decreases in Housing