Using supply and demand analysis, explain the effect on the equilibrium price and

quantity traded of houses in a country following the events below. (Consider each

event separately.)

(i) A fall in the rate of interest on loans for house purchases for an extended

period of time.

[5 marks]

(ii) A rise in the level of taxes to be paid on the sale of a house.

[5 marks]

(iii) The relaxation of planning controls allowing more land to be used for

building new houses.

[5 marks]