Scottish economy Essay Example

golden opportunity and take full advantage.

Because some entrepreneurs have been able to Identify the demand for all types of housing, they have built, and made deals to sell them to the councils as affordable housing to try and relive the demand in local areas. However building houses may seem Like a great way to make quick profit, but there Is a lot of ;red tape" developers must take Into account. Some may buy a property that has a substantial amount of land attached to it, and decide that they want to build more houses on that land. In some areas of the country the government has declared omen parts to be In what is called, The Green Belt Zone. This is to stop developers putting up houses wherever they want to and potentially ruining parts of our countryside, or raising houses that where they are situated, could look out of place.

Hesitant to provide finance especially on large scale projects. Many things could go wrong or even delay work, which could then incur more costs that the developer may not have provisioned for. Things such as delays, or refusal with planning permission. Bad weather not permitting contractors to carry out work on time, or possibly imaging work already done.

There are so many factors to take into account. But as always in economics if there is a demand, there will always be people willing to supply, as the profit that could be obtained is Just too tempting.

Q. If all things remain equal, and real incomes increase in Scotland, the demand for housing will then increase. So the demand curve will then shift as

shown. Pence D Quantity s If all other things remain equal, and the price of a substitute good decreases, the demand will decrease and the demand curve will shift as shown.

Q.

If all other things remain equal, and the Government provides a subsidy to producers of housing, the supply will then increase and the supply curve will shift as shown. If all other things remain equal, and there is an increase in the cost of factors of production in housing in Scotland, the supply will decrease and the supply curve will shift as shown. Q. In a supply and demand graph, the market equilibrium price is where supply meets demand.

There is a line for market equilibrium price and a line for market equilibrium quantity as shown below.