Matt Hutchinson, communications director at SpareRoom, told CNN Business that the capital has seen a huge...

 

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Matt Hutchinson, communications director at SpareRoom, told CNN Business that the capital has seen a "huge influx" of students, young people and overseas workers in recent months -demand that the pandemic kept bottled up. - At the peak in September, there were almost nine people looking for every room listed on the site. "We've never seen the market like it is now," Hutchinson said. Though demand has fallen back slightly since September, it is still higher than the average summer peak, when the market is usually its busiest. "If someone has advertised a room in the last few months, chances are they're getting hundreds of responses," Hutchinson said. "It's a battle to even get a response or get an agent to see you," he added. Renters across the United Kingdom are having to go to extraordinary lengths to secure a room. In a SpareRoom survey of UK renters in September, a fifth said they ended up paying several months' rent up front while another fifth said they had to bid over the asking price to secure the room. Nearly half said they had to decide during a viewing whether to take the room. Greg McLoughlin told CNN Business that when he started his "exhausting" six-week search for a room in early October, he was often asked to pay a deposit equivalent to eight weeks' rent-double the typical four weeks. McLoughlin, who works for a cryptocurrency exchange, said he "rarely got any messages back" on SpareRoom, despite paying an £11 ($13) weekly subscription so that he could respond to ads within seven days of them being posted. He eventually snapped up a room in a five-bedroom house in south London for £950 ($1,130), though the landlord has warned that the rent will likely increase. Still, he's relieved. "Everyone's super on edge looking for accommodation," McLoughlin said. "You can't hesitate in this market," he added. Please read the article and answer the following questions (6 to 8 lines each): 1- Describe the problem highlighted in the article using the concepts that you learned in Chapter 3 on supply and demand. Explain the reasons that led to changes in demand and supply. 2- Support your answer in part (1-) with a graph. Make sure to show the shift(s) of the curve(s), if any, and the effect on the equilibrium price and quantity. Matt Hutchinson, communications director at SpareRoom, told CNN Business that the capital has seen a "huge influx" of students, young people and overseas workers in recent months -demand that the pandemic kept bottled up. - At the peak in September, there were almost nine people looking for every room listed on the site. "We've never seen the market like it is now," Hutchinson said. Though demand has fallen back slightly since September, it is still higher than the average summer peak, when the market is usually its busiest. "If someone has advertised a room in the last few months, chances are they're getting hundreds of responses," Hutchinson said. "It's a battle to even get a response or get an agent to see you," he added. Renters across the United Kingdom are having to go to extraordinary lengths to secure a room. In a SpareRoom survey of UK renters in September, a fifth said they ended up paying several months' rent up front while another fifth said they had to bid over the asking price to secure the room. Nearly half said they had to decide during a viewing whether to take the room. Greg McLoughlin told CNN Business that when he started his "exhausting" six-week search for a room in early October, he was often asked to pay a deposit equivalent to eight weeks' rent-double the typical four weeks. McLoughlin, who works for a cryptocurrency exchange, said he "rarely got any messages back" on SpareRoom, despite paying an £11 ($13) weekly subscription so that he could respond to ads within seven days of them being posted. He eventually snapped up a room in a five-bedroom house in south London for £950 ($1,130), though the landlord has warned that the rent will likely increase. Still, he's relieved. "Everyone's super on edge looking for accommodation," McLoughlin said. "You can't hesitate in this market," he added. Please read the article and answer the following questions (6 to 8 lines each): 1- Describe the problem highlighted in the article using the concepts that you learned in Chapter 3 on supply and demand. Explain the reasons that led to changes in demand and supply. 2- Support your answer in part (1-) with a graph. Make sure to show the shift(s) of the curve(s), if any, and the effect on the equilibrium price and quantity.