Consider the market for new owner-occupied residential housing. What factor(s) will cause either a movement along the demand curve for housing or a shift of the demand curve for housing? v. What factms likely affect the supply of housing? iii. If the rental properties become more affordable, which curve (demand or supply) might be affected? How? Illustrate the effect on the equilibrium price and quantity using a diagram. iv. If construction costs increase, which curve (demand or supply) might be affected in the short-run? How? Illustrate your answer using a demand-supply diagram. If the National Construction Code requires new residential properties M install 8-star rated appliances that will significantly increase their cost, using a demand-supply diagram, illus.ate the effect on the equilibrium price and quantity sold of these new properties.
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