To analyse how an event influences a market, we examine effects of supply and demand and how the event affects the equilibrium price and quantity. Consider the market for new residential flats and the following events:

a)A rise in the price of building materials.

b)Flat living becomes fashionable.

c)A fall in the price of new houses.

d)A rise in the price of old houses and flats.

e)The imposition of a new construction tax on houses (but not flats).

f)The belief that the price of flats will soon rise substantially.

Required:

For EACH of the events listed above,

i.Identify which curve (Demand or Supply) is affected for new residential flats?

ii.What direction is it shifted?

iii.What is the resulting impact on equilibrium price and quantity of new residential flats?