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please draw three diagrams in each scenario describe below using demand and supply concept Consider a diagram containing two-axis, X-axis measures the number of houses(Q)

please draw three diagrams in each scenario describe below using demand and supply concept

Consider a diagram containing two-axis, X-axis measures the number of houses(Q) and the price(P) of the houses on the y-axis. The demand curve(DD1) sloped downward and the supply curve(SS1) sloped upward. They intersect at point A which gives the equilibrium. Q1 is the equilibrium quantity and the P1 is the equilibrium price.

1. Changes in supply and demand for resale flats were totally dependent on external factors like COVID or war. The setback of the construction occurred because of the pandemic and prices raised. Apartment supply decreased. Also, the demand increases for houses by the wealthier people of Singapore. There is a shift of the supply curve parallelly inwards, say to SS2. Also, the demand curve for houses shifts outwards due to the rise in demand by the rich section of people. DD2 is the new demand curve. Let SS2 and DD2 intersect at point B. The new equilibrium quantity is Q2 and the price is P2 respectively. It is worth noting that P2 is greater than P1 which means that the price of the houses has elevated. Hence a fall in the supply and a rise in the demand for resale flats increases the market price of housing properties in Singapore.

2. the implementation of PMC resulted in the reduction of the supply of housing apartments because prices are reduced and suppliers find it unprofitable to sell the apartment at such a lower price. However, at the same time, the demand remains intact. The supply curve shifts leftwards to SS2. The new equilibrium occurs at point B where the price of resale flats is raised to P2 from P1. However, the quantity falls to Q2 from Q1.

3.In the long run (LR), as the suppliers tend to decrease the supply continuously and buyers are constantly increasing the demand for HDB resale flats, there arises the excess demand(ED) in an economy for resale flats. In the case of ED, the market mechanism operates and the prices of flats are automatically adjusted in such a manner that ED is eliminated by raising the prices. Most of the consumers that were capable of buying flats at earlier prices are now reluctant to buy the flats due to excessive pricing and also most of the sellers who were reluctant to sell flats at lower prices are now ready to sell the flat at a new higher price. Demand and supply match and the HDB market attain the initial equilibrium of point A.

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