Case:
Pakistan is the fifth most popular country in the World,
with 220 Million citizens. Out of total population, 36.38% lived in urban areas
where as 63.62% resides in rural areas. There is a (Raise For Success) huge demand for houses due
to a 2.4% annual population growth rate as per census 2017. Further, Pakistan’s
construction industry is suffering from a severe storage of housing facilities,
particularly for low and middle-income groups. Suppose the quantity demanded
and quantity supplied functions for houses are given below:
Qd= 25000 – 2P
Qs= 10,000+1P
Where “P” is the price in (Raise For Success) rupees of a housing unit, “Qd” is
quantity demanded for housing units. “Qs” is quantity supplied for housing
units.
Requirements:
- Calculate the market equilibrium level of price and quantity of a housing unit?
- Calculate price elasticity of demand using point elasticity method when the construction industry is in equilibrium and interpret the results?
- What kind of price rationing strategy should be implemented by Government to provide renters with houses at affordable price? Also mention the impact of this strategy on equilibrium quantity demanded and equilibrium quantity supplied of houses?
Click Below To Download Solution File
Download
Tags:
eco401
ECO401 - Economics Solution Assignment No 1 Spring 2021
eco401 assignment no 1 solution 2021 by Raise For Success
Economics
quantity demanded
quantity supplied