1. Prices of houses in Darwin have been falling in recent years. It is in this context, answer the following questions:

(a) What are the major drivers of falling house prices in Darwin. [2 marks]

(b) Using an appropriate diagram, explain your answer in part (a) above. [5 marks]

(c) Is the supply of land in metropolitan cities like Melbourne, Sydney and Darwin perfectly inelastic? Why? Discuss. [3 marks]

P.S, I have difficulty in explaining in length for (b). Please help me with it. Thanks.