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A Brief Overview of the Housing Economy
Essay specific features
Written by:
Derek C
Date added:
August 27, 2014
Level:
Grade:
B
No of pages / words:
7 / 1886
Was viewed:
10216 times
Rating of current essay:
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...
displayed 300 characters
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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...
displayed 300 characters
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