Buying an existing home demanders in the housing market

Assignment Help Business Economics

Reference no: EM13858996

Suppose people who are thinking about buying an existing home (demanders in the housing market) are current home owners who are thinking about selling their homes (i.e. suppliers in the housing market) suddenly believe that existing home prices are likely to be signifigantly higher next year than this year.

A. Will this change in expectation cause the demand for existing homes to increase or decrease this year? Explain.

B. Will this change in expectation cause the supply of existing homes on the market to increase or decrease this year? Explain.

C. what effect will these changes in expectation have on the price of existing homes this year?

Reference no: EM13858996

Questions Cloud

Hospice facility consultant essay : Hospice Facility Consultant Essay-You are a consultant in a hospice facility for adult patients who come from diverse ethnic and cultural backgrounds. The administration has two concerns

Basis after formation of the partnership : What is Suzy's basis after formation of the partnership? Anna's basis? What income and separately stated item does the partnership report on Suzy's Schedule K-1? What items does Suzy report on her tax return?

Describe the fundamental components of a distributed system : Describe the fundamental components of a distributed system

The own price elasticity of demand for product : You are the manager of a firm that receives revenues of $40,000 per year from product X and $80,000 per year from product Y. The own price elasticity of demand for product X is -1.5, and the cross-price elasticity of demand between product Y and X is..

Buying an existing home demanders in the housing market : Suppose people who are thinking about buying an existing home (demanders in the housing market) are current home owners who are thinking about selling their homes (i.e. suppliers in the housing market) suddenly believe that existing home prices are l..

Market clearing price for commodity : Suppose the government sets a controlled price below the market clearing price for a commodity. Draw a diagram and use the idea of a maximum buying price to explain whether the total price paid by the buyers will end up lower or higher than before.

Question for market efficiency of the healthcare system : Analyze the significant implications of the issues in question for market efficiency of the healthcare system

Corporation engaged in the manufacturing of shoes : In April 2004, Main Corp., a New York corporation engaged in the manufacturing of shoes, formed a subsidiary corporation, Sub Corp. and transferred to Sub Corp. title to Blackacre, in exchange for a $1,000,000 purchase money mortgage. Blackacre, a co..

What is the externality associated with individual driving : What is the externality associated with an individual driving on a congested highway? how do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..

User Account

All Pages