[Solved] Supply and demand analysis allows us to investigate and understand how the operation of markets, or sometimes the failure

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[Solved] Supply and demand analysis allows us to investigate and understand how the operation of markets, or sometimes the failure of markets.

ASSESSMENT QUESTION

Supply and demand analysis allows us to investigate and understand how the operation of markets, or sometimes the failure of markets.

Task 1

Using supply and demand analysis identify the main factors in determining the price of private rental housing in the UK. Support your analysis with the use of supply and demand graphs.

Task 2

Identify and explain the main governmental/economic policies that could be used to influence the demand bbc

You must include a range of Supply and Demand diagrams to show relevant shifts, equilibriums, and effects on price and quantity. Include elasticity diagrams.

You are strongly advised to edit diagrams and quotes from Investopedia

Task one assessment criteria:

Knowledge and Understanding of the language of economics.

Knowledge and Understanding of the basic methodology and models used in this area and their application to real- world situations.

Points to consider:

A range of factors need to be clearly identified. These could include- Regional / local demand factors

Population.

Interest rates

Taxation ,

House building,

The income effect,

Price caps/ subsidises/ intervention

Complementary / substitutes

This is not an exclusive list.

Diagrams must be included. Demand to right / left and the effect on private house prices. Supply to right / left and the effect on private house prices.

Task two assessment criteria:

Knowledge and Understanding of the basic methodology and models used in this area and their application to real- world situations.

Intellectual, practical effective and transferable skills. Achieved through the ability to analyse hypothetical and/or real world situations that occur in economics.

Points to consider: 

The main economic policies. These could include Interest rates

Taxation ,

Tenants/ landlord rights

Government policy .

On the supply side- policies on public housing, landlords, social housing