doesn't matter how it's solved.

To enter or not to enter trades and hope t5 buld on that knctitdee and ins buiness degree. You want to go into the Here are the facts and fiamne (rhinh pod are to gather and do). First you need to be able to build 20 trits 2 year to mate mopgh to fustit gume mino the business. So what you are interested in knowing 1 if the demand for nem husses is nereasing enough for you to sell that many houses, without cuning nfto the sales of estrblished bulders. You figure this way. Riafin now there are so man butiders in the Ka amazoo area (the county say). They are butidingsomany fem hutses each sieas, and each builder wants to expand their business by so many mits a year. All rirht say might notr, this year, year 1,400 units are being built and bulders wart to build 1 Hit 2 ath pear. Thell then nent year, year 2 , established builders will want to build 440 units. Fell, if the demand for new units each year goes up by say 5% (from 400 to 420 ) then there's no reom for you in the market, unless you're willing to build a home for less than established builders are charging, which you are reluctant to do. All right, what would determine the annual increase in the demand for new homes? Answer. any number of things. Well focus on one thing real income. As real income goes up in the area (income adjusted for changes in prices), the demand for new homes will go up. How much? That depends on two things. One, the year-to-year percentage increase in averge real income. Two, the income elasticity of demand for new homes. Say the first number is 15% and the second number is 2.1. Then the demand for new homes will go up by 2.115%=31.5%. In that case, if 400 new units were demanded in year 1 , that many plus 31.5% of that many would be demanded in year 2. Thus, if 400 units were demanded in year 1,1.315400=526 units would be demanded in year 2. OK, in that case a new builder could be bullish about entering the market. Established builderv will want to build 440 units in year 2 and demand will be 526 units. That leaves 86 units for grabs. And you only need to grab 20 of those to be in business. All right, now it's time to gather some data and do some more figuring (of the above sort). Go to census.gov. Click as follows browse by topic; income and poverty; income; data tables; historical income tables households; Table H6, all races. Go to the section of Table H6, all races for the midwest and get mean income in 20205 for 2009 and 2019. Put those numbers in 1) and 2) on the answer sheet. Figure the percentage change in that income from 2009 to 2019 and put that in 3). (The column that you're getting these incomes from should have 86,638 as mean income in 20205 for 2000 .) Now let's see how the demand for new homes changed over that period. Go back to census.gov. Now click as follows browse by topic; housing; new housing (construction); historical data; housing units authorized in permit-issuing places. Note that the last click will open an XIS file for you. Under "ansual data" get the total number of New Privately Owned Housing Units Authorized by Building Permits in Permit-Issuing Places for the midwest for 2009 and 2019. (Youre in the right column if the number for 2000 is 323,800 .) Put the numbers you get in 4) and 5). Figure the percentage change in new housing units from 2009 to 2019 and put that in 6). Use the numbers in 3) and 6) to estinate the income elasticity of demand for new houses in the midwest. Put that number in 7). How in the S=06 do I do that? Good question. Go to REVNOTESelasticity. Go to the second page in that file ( 29 is in the lower right hard comer of the page). There you'll find the formula for estimating own price elasticits (about a quarter of the way down the page, in bold). Substitute "income" for "price" and you have the formula for estimating income elasticity. All right, you're almost finished. Suppose that income elasticity is 3. Now when I convert the percentage change in income that you got calculated into an annual percentage change, I get 2%. So use these two numbers ( 3 for elasticity and 2% of for the percentage change in income) to figure S), the percentage increase in the demand for new homes in the Kalamazoo area. Use that number to figure the number of new bomes that will be demanded next year if this year that demand is 400 units. Put that number in 9 ) So, if customers will go to established builders before they 11 go to a new builder prices the same, and if established builders witl want to increase their sales of new homes by 10% next year, what would you have to be willing and able to do to enter this market with sales of 20 units? Answer charge less than established builders. How much less? Well, that's determined by own price elasticity of demand for net houses, and the % increase in demand that you need to provoke through a price cut You want to cut price enough to increase demand by 20/400x 100%=5%. Suppose that own price elaaticity is 5 . Use those two numbers to figure the % decrease in price necessary to increase temanc by 20 bnits. Put that in 10 ) and you're done. Answers: 1) Average household licome in 20195 midtest, 2009 2) Average household income in 2019 \$ midivest 2019 3) Percentage change in household income 2009 to 2019 4) New Privately Ourned Housing Units anthorized 3009 5) New Privately Owned Housing Units Auborized 2019 6) Percentage chang in housing units authorized ang to 0019 7) Estimated ineome elaaticity of cemand for ney houses 8) % increase in the demanid for nter home halamazocarea 9) The increase in the number of neiv nomes demanded. Kalarea. 10) \%odecrease in price necessan to increase demand by 20 inite To enter or not to enter trades and hope t5 buld on that knctitdee and ins buiness degree. You want to go into the Here are the facts and fiamne (rhinh pod are to gather and do). First you need to be able to build 20 trits 2 year to mate mopgh to fustit gume mino the business. So what you are interested in knowing 1 if the demand for nem husses is nereasing enough for you to sell that many houses, without cuning nfto the sales of estrblished bulders. You figure this way. Riafin now there are so man butiders in the Ka amazoo area (the county say). They are butidingsomany fem hutses each sieas, and each builder wants to expand their business by so many mits a year. All rirht say might notr, this year, year 1,400 units are being built and bulders wart to build 1 Hit 2 ath pear. Thell then nent year, year 2 , established builders will want to build 440 units. Fell, if the demand for new units each year goes up by say 5% (from 400 to 420 ) then there's no reom for you in the market, unless you're willing to build a home for less than established builders are charging, which you are reluctant to do. All right, what would determine the annual increase in the demand for new homes? Answer. any number of things. Well focus on one thing real income. As real income goes up in the area (income adjusted for changes in prices), the demand for new homes will go up. How much? That depends on two things. One, the year-to-year percentage increase in averge real income. Two, the income elasticity of demand for new homes. Say the first number is 15% and the second number is 2.1. Then the demand for new homes will go up by 2.115%=31.5%. In that case, if 400 new units were demanded in year 1 , that many plus 31.5% of that many would be demanded in year 2. Thus, if 400 units were demanded in year 1,1.315400=526 units would be demanded in year 2. OK, in that case a new builder could be bullish about entering the market. Established builderv will want to build 440 units in year 2 and demand will be 526 units. That leaves 86 units for grabs. And you only need to grab 20 of those to be in business. All right, now it's time to gather some data and do some more figuring (of the above sort). Go to census.gov. Click as follows browse by topic; income and poverty; income; data tables; historical income tables households; Table H6, all races. Go to the section of Table H6, all races for the midwest and get mean income in 20205 for 2009 and 2019. Put those numbers in 1) and 2) on the answer sheet. Figure the percentage change in that income from 2009 to 2019 and put that in 3). (The column that you're getting these incomes from should have 86,638 as mean income in 20205 for 2000 .) Now let's see how the demand for new homes changed over that period. Go back to census.gov. Now click as follows browse by topic; housing; new housing (construction); historical data; housing units authorized in permit-issuing places. Note that the last click will open an XIS file for you. Under "ansual data" get the total number of New Privately Owned Housing Units Authorized by Building Permits in Permit-Issuing Places for the midwest for 2009 and 2019. (Youre in the right column if the number for 2000 is 323,800 .) Put the numbers you get in 4) and 5). Figure the percentage change in new housing units from 2009 to 2019 and put that in 6). Use the numbers in 3) and 6) to estinate the income elasticity of demand for new houses in the midwest. Put that number in 7). How in the S=06 do I do that? Good question. Go to REVNOTESelasticity. Go to the second page in that file ( 29 is in the lower right hard comer of the page). There you'll find the formula for estimating own price elasticits (about a quarter of the way down the page, in bold). Substitute "income" for "price" and you have the formula for estimating income elasticity. All right, you're almost finished. Suppose that income elasticity is 3. Now when I convert the percentage change in income that you got calculated into an annual percentage change, I get 2%. So use these two numbers ( 3 for elasticity and 2% of for the percentage change in income) to figure S), the percentage increase in the demand for new homes in the Kalamazoo area. Use that number to figure the number of new bomes that will be demanded next year if this year that demand is 400 units. Put that number in 9 ) So, if customers will go to established builders before they 11 go to a new builder prices the same, and if established builders witl want to increase their sales of new homes by 10% next year, what would you have to be willing and able to do to enter this market with sales of 20 units? Answer charge less than established builders. How much less? Well, that's determined by own price elasticity of demand for net houses, and the % increase in demand that you need to provoke through a price cut You want to cut price enough to increase demand by 20/400x 100%=5%. Suppose that own price elaaticity is 5 . Use those two numbers to figure the % decrease in price necessary to increase temanc by 20 bnits. Put that in 10 ) and you're done. Answers: 1) Average household licome in 20195 midtest, 2009 2) Average household income in 2019 \$ midivest 2019 3) Percentage change in household income 2009 to 2019 4) New Privately Ourned Housing Units anthorized 3009 5) New Privately Owned Housing Units Auborized 2019 6) Percentage chang in housing units authorized ang to 0019 7) Estimated ineome elaaticity of cemand for ney houses 8) % increase in the demanid for nter home halamazocarea 9) The increase in the number of neiv nomes demanded. Kalarea. 10) \%odecrease in price necessan to increase demand by 20 inite