Question 3 a. You are given the following data for a residential development (project under consideration in the table below) and for two competing housing projects. Use one of the techniques we discussed in class to calculate at what price the houses in the project under consideration should be sold based on the prices of the homes sold in the two competing projects. The data for structure quality is expressed as amenity indices. Present and explain clearly all the calculations that you carried out in order to estimate the prices of the housing units in the project under consideration. Distance from city center (km) Total covered space in each housing unit (sq.m.) Number of supermarkets within a distance of 1 km Structure quality Price of housing units Project under consideration 1.5 175 2 100 Competing Competing project 1 project 2 0.6 3.2 160 145 1 105 110 192,000 181,250 b. Based on the theory of supply and demand, please explain why the prices of apartments in Cyprus increased at a slower rate than the prices of houses in the period 2006-2008 and fell at a faster rate in the period 2011-2014