Supply-side disruptions due to covid-19 pandemic

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Assume that following supply-side disruptions due to COVID-19 pandemic, construction materials (for example, steel and timber) prices go up around the world. The Director Housing has asked you to explain the various repercussions of higher construction materials prices.

a) Use a relevant diagram to show and discuss the impact of rising construction materials prices with the context of domestic property market.

b) Examine the impact on:

  • housing affordability;
  • profitability of real estate companies;
  • sales commissions earned by real estate agents.

c) Discuss briefly two policy options to address some of the undesirable implications of higher construction materials prices.

Reference no: EM132631790

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