Your task is to use your knowledge of microeconomics to establish the facts and analyse Londons housing market. Evaluate the economic functioning of the housing market in London, including demand and supply, incentives, elasticity on demand and supply and any signs of price bubble. Explain possible options for policy intervention to correct market failure and make recommendations to policy makers. Overall your report will be approximately 2,500 words long, covering all of the following points but in a coherent, academic report. Do not answer the questions in the style of an examination. Exceeding the word limit by more than 10% may result in a penalty of up to 10% of your mark.Please make extensive use of academic literature (peer reviewed academic journal articles not just textbooks, newspaper articles or news sites online), government reports and business reports in finding potential sources and determinants of demand and supply, and their elasticities, in the housing market. Only coursework that extensively uses and critically discusses academic literature to support their analysis will score 60% and higher. For data, use appropriate sources, including data bases (Bloomberg), government and business reports. In case you wish to refer to news and events, use highly reliable news services such as the Financial Times. Do not use internet sources of uncertain or questionable origin.
Analyse demand and supply functions and how they may influence decision making of various groups.
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