1. Using a visual inspection of the data on the price and quantities for houses in the UK, what basic deductions can you make about the UK housing market generally?[10 marks]

2. Provide a commentary that might explain the underlying factors driving the two profiles of prices and quantities over time.[10 marks]

3. What advice would you give to the government if there are episodes where the market for housing is not performing normally, for example where both quantity and price are co-moving?[10 marks]

Case Study 1: Anatomy of price and quantity changes [30 marks] In Figure 1 you can see data for the UK housing industry during the period 1990 to 2017. Figure 1: UK house market 1985-2017 (2015- 100) UK house market 198572017 (2015-100) "l\" -* F5. .1 l\