Economics Posted: January 17th, 2015
The UK is suffering from a housing crisis. The current rate of construction is well below the target level and, as a result, house prices have been increasing rapidly, pricing many first time buyers out of the property market.
Required:
• Explain the economic problem of scarcity by using demand and supply factors relevant to the housing market in the UK.
(40 marks)
• Discuss the actions taken by the UK government to overcome the problem in the housing market.
(40 marks)
Note: 20 marks are available for referencing and effective communication