Write up a general supply function for housing (specify the variables mentioned in this article that impact the supply side of the market-note-there are some variables mentioned that are not included in the list of 6 variables that your text/class says often impact the supply for a good). Be sure to discuss these factors. Specify the direction of the relationship between each of these variables and Qs of homes. You may assume that most Americans buy their homes via taking out a loan, and that the interest rate (mortgage rate on a loan) is not the price of the home, but impacts the cost of the monthly payment on a home loan of any given amount. The higher the interest rate on a loan, the higher will be the monthly payment on a given size loan.?

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The supply function for housing can be influenced by various factors that impact the production and availability of homes in the market These factors ... View the full answer