8241 C53) @ 3 a \"ll " -. e REEAs...nt2('l) [E] / Assignment: Supply and Demand of Housing A key skill in economics is the ability to use the theory of supply and demand to analyze specific markets. In this week's assignment, you get a chance to demonstrate your ability to analyze the effects of several "shocks" to the market for real estate. Answer all parts of each of the scenarios below. Given the recent development as published in different newspaper that states: \"The Department of Human Settlements and Urban Development (DHSUD) has increased the price ceiling for economic housing from P1] million to P25 million, which was determined after their extensive consultation with the National Economic and Development Authority (N EDA)." Scenario 1: Will this affect the supply or the demand for housing? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of housing? Explain your reasoning. Scenario 2: Suppose the Philippine Statistics Authority publishes a report finding that unemployment increases from 8.1 percent to 8.9 percent in the same period. How do you imagine this will affect the market for housing? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of housing? Explain your reasoning. Scenario 3: Combine parts 1 and 2. Suppose that the government increases the price of housing, and a PSA report is published indicating that unemployment increases. What will the combined impact be on the equilibrium price and quantity of housing? Explain your reasoning and show graphically. Make sure you think this through carefully! I\" C] A