Demand, Supply, Elasticity Of Demand And Supply

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Introduction: This topic is related to demand and supply, elasticity of demand and supply as well as market structure. Housing sector is a good example of monopoly market. This report is an attempt to represent the current real-estate scenario as well as the factors affecting this scenario with the help of some of the relevant and related economics theories. Housing affordability has become a very important issue of discussion among real estate agents, normal people, media and politicians in today’s date. As the native populations as well as the students from overseas are increasing, there is high demand of units, housing facility especially in Sydney & Melbourne, as these are the two attractive cities where people want to live. Further this report provide conclusion of this scenario and recommendations that are helpful in overcoming this issue. Analyse: Causes: For setting the price of any item demand and supply as well as the elasticity of both demand and supply plays a crucial role. The price of housing sector was not so high in past, there used to be normal demand and the supply was enough to cover the demand, so the price for the property was reasonable. But in recent few years, as a result of increase in population and enhanced living standard the demand for housing facilities in Sydney and Melbourne has increased. In today’s market, aggregate demand for housing sector is more elastic in comparison to aggregate supply because in short run the supply cannot be

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