Using supply and demand analysis identify the main factors in determining the price of private housing in the UK. Support your analysis with the use of supply and demand graphs.
Module Title: Economics for Business Module Code: MOD 003349
ASSESSMENT QUESTION
Supply and demand analysis allows us to investigate and understand how the operation of markets, or sometimes the failure of markets.
Task 1 Using supply and demand analysis identify the main factors in determining the price of private housing in the UK. Support your analysis with the use of supply and demand graphs. (50 marks)
Task 2 Identify and explain the main government/ economic policies that can be used to stimulate the demand for private housing in the UK. (40 marks) Note: 10 marks are available for referencing and effective communication
Task one assessment criteria:
Knowledge and understanding of the language of economics. Knowledge and understanding of the basic methodology and models used in this area and their application to real- world situations. Points to consider: A range of factors need to be clearly identified. These could include: Interest rates Stamp duty House building The income effect Regional / local demand factors Population. This is not an exclusive list. Diagrams must be included. Demand to right / left and the effect on private house prices. Supply to right / left and the effect on private house prices.
Task two assessment criteria:
Knowledge and Understanding of the basic methodology and models used in this area and their application to real- world situations. Intellectual, practical effective and transferable skills. Achieved through the ability to analyse hypothetical and/or real world situations that occur in economics. Points to consider: The main economic policies. These could include Interest rates Stamp duty, Right to buy schemes/ affordable home ownership schemes Planning permissions/ green belt land.
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