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Essay

A Brief Overview of the Housing Economy

Essay specific features

 

Issue:

Business

 

Written by:

Derek C

 

Date added:

August 27, 2014

 

Level:

 

Grade:

B

 

No of pages / words:

7 / 1886

 

Was viewed:

10209 times

 

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Essay content:

Recent statistics indicate that there is an increase in mortgage applications; however, at the same time there is a decrease in permits and new-home startups that could affect the economy for several years to come. In addition, another disturbing trend is the increase in home building cancellations during the last 3 ? 4 months...
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In addition, another disturbing trend is the increase in home building cancellations during the last 3 ? 4 months. Elasticity of Supply and Demand Most Americans consider housing a necessity. "Necessities tend to have inelastic demands, whereas luxuries have elastic demands" (Mankiw, 2004, p. 90). Due to the slight change in price if the quantity demanded increases or decreases, the price elasticity of demand in the home building industry is inelastic...
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