Housing prices in the UK are generally 1ureryr high. particularly in certain areas of the country such as the South East. This makes it difcult
Housing prices in the UK are generally 1ureryr high. particularly in certain areas of the country such as the South East. This makes it difcult for many people to be able to afford to buy their own houses. In England. average houses prices are now almost El times the average worker's salary; in parts of the West Midlands. the high prices have been caused by demand growing faster than supply. Source: (Gillespie: 2019} Figure 9.9 below shows m'll'l' market conditions have changed in the housing market. Figure 9.9 market conditions and house prices Equilibrium has moved from P101 to PEQE. The most likely explanation for the changes shown is a A. Fall in mortgage interest rates and an increase in the number of houses built B. Fall in mortgage interest rates and a decrease in the number of houses built C. Rise in mortgage interest rates and an increase in the number of houses built D. Rises in mortgage interest rates and a decrease in ttre number of houses built
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance