In 2018, Chinas house prices were expected to rise by 5 percent and by 3.3 percent in
Question:
In 2018, China’s house prices were expected to rise by 5 percent and by 3.3 percent in the first half of 2019. While it seems like house prices in China always rise and never fall, it was not the case in 2008. When the demand for housing increases, prices in the housing market also rise, but not by much. For prices to rise substantially, the supply of housing must be relatively inelastic. That is, if the quantity supplied increases rapidly whenever house prices rise, price increases will remain small. Many have suggested government policies to increase the elasticity of supply. Which policies might hold prices down when demand increases? Explain.
Step by Step Answer:
Principles Of Economics
ISBN: 9781292294698
13th Global Edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster