Purchase Solution

Effect of demand and supply on housing prices

Not what you're looking for?

Ask Custom Question

Explain why housing prices vary from city to city. Clearly explain how supply and demand affect the prices of the homes.
I have done the research on various markets but I and the cost of housing but I am not sure how to explain why the prices vary.
Washington Atlanta Denver New Jersey San Francisco
$350,000 $135,000 $169,000 $279,900 $489,000
$350,000 $139,900 $170,000 $285,000 $350,000
$359,900 $144,000 $170,000 $319,000 $338,888
$353,300 $139,633 $169,667 $294,633 $392,629

Purchase this Solution

Solution Summary

Housing prices vary from city to city due to differences in parameters affecting the prices. The solution discusses various factors on the supply side and demand side and explains how the changes in supply and demand for the housing would push the prices up or down. The solution is 366 words and two charts.

Solution Preview

See the attached file for complete solution. The text here may not be copied exactly as some of the symbols / tables may not print. Thanks
This should provide you enough lead to build your answer. Best wishes.

Housing prices vary from city to city due to differences in parameters affecting the prices.

Supply Side: The supply side is constrained with limited land availability. The land is limited and number of houses, which can be built on the limited land, are also limited. Although, a city can expand to cater to the increasing housing demand by expanding its ...

Purchase this Solution

Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.