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, expecially 2(a). Please help me with it.