Answered You can hire a professional tutor to get the answer.
The federal government took a laissez faire (free market) attitude towards the financial institutions during the late 1990s and early 2000s and
The federal government took a laissez faire (free market) attitude towards the financial institutions during the late 1990s and early 2000s and permitted the financial markets to take on the creation of new, innovate financial tools, such as insurance against drops in the market (AIG was one of the major companies offering this insurance), no down payment mortgages, and interest only mortgage payments. As a result the demand for housing rose dramatically as more families could afford to buy a home. Using supply and demand curves, demonstrate that impact of these creative, liberal financing methods on the housing market. (Already asked)Aside from this creative financing, what would, in theory, increase the demand for housing?Describe the short and long run housing supply curves. Do you think they are elastic or inelastic? Why? Explain the impact of the nature of the supply curve on housing prices. The attached housing article (Washington Post, 11, 25, 2011, p. A21) reports that housing prices have fallen by 1/3 since 2006. What did you learn from economics that explains why the impacts on the housing market were more severe and dramatic in this recession than in previous recessions? Draw both the demand and supply curves. Before the housing bubble occurred, Explain what you think the supply curve for housing looks like below the equilibrium price, i.e. as prices fall what does the supply curve look like in the short run and then in the long run? Describe these supply curves below the market equilibrium in words and well as in drawings. The attached article (Washington Post, 11, 25, 2011, p. A21) reports some signs of strength in the multi-family housing market. What is the relationship between single family and multi-family housing. Why might the multi-family housing market be more robust than the single family housing market?What are some of the spatial implications of this collapse in our housing market? Draw supply and demand curves for different housing markets.
