Intro To Economics 2

I followed the instructions and checked hearthstone prices for a 3 bedroom 2 bathroom dramaturgy in the cities of Los Angeles , Miami , unseasoned York , Denver Sacramento and capital of Tennessee . Prices were most expensive at Los Angeles with the cheapest home asking for a price of 149 ,000 . New York is the glaring most pricey followed by Miami , Sacramento , Denver and capital of Tennessee where a three bedroom two bathroom ho office scum bag be had for as low as 6 ,900 go Smith tells us that prices in the assailable market ar set by the forces of emerge and motivating . Increased demand drives the equilibrium price up plot of ground growingd cater drives the price down (Mankiw , 2007 . In this , we provide use Adam Smith s provide and demand to examine the geographic differences mingled with hold prices . Macr oeconomic factors such as interest hold judgment , inflation and general economic performance may hit house prices (Ernest , 2006 . However , such things mend house prices on a national scale and therefore affect all(a) cities equally . Thus we exclude these national factors in our analysisWhat ar some things which burn down affect local housing drop out for and demand An economic boom in a urban center will run for to drive prices up . sparing booms will be preceded by subjoind population due to migration as well as higher wages . These things will range to shift the demand curve to the right resulting in an improver in price . The high population will withal explain the high prices in New York and Los Angeles - two actually densely populated cities .

Traffic is one thing which can affect housing prices If commuting to and from impart is an unpleasant spawn , to a greater extent people will wish to live in the urban center rather than endure the drive to and from the suburbs thusly change magnitude demand . It can also work on the supply side as people invigoration in the city center will refuse to be given to the suburbs hence fracture supply to the left and increasing prices . last , high judge of crime in the city or poor governing body services (education hospitals , police insurance coverage ) will tend to increase supply as more people will hope to sell their homes to move apart . This will shift supply leftward and reduce pricesBibliographyErnest , J (September 6 , 2006 . The economics of housing - What personal effects housing prices . In Active Rain Real farming Network . Retrieved may 2 2008 , from http /activerain .com /blogsview /The-economics-of-housing-What-effects-ho using-prices- ?7195Mankiw , Gregory (2007 . Principles of Economics . mason , OH : Thomson Higher Education...If you want to depart a full essay, cast it on our website: OrderCustomPaper.com

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