Firms, Markets and Business Management

Topic

Firms, Markets and Business Management

Instructions

Discuss:

Proponents of policies to allow taller buildings argue that this strategy will result in lower cost of housing, while the opponents argue that the policy will result in a high cost of housing

Answer preview

Taking the side of the proponents of the taller high-density buildings, the law of supply and demand is fundamental to support this argument. The economic principle of supply and demand explains the relationship between the demand for housing and the available supply, and how the interactions affect the cost of housing (Opuni, 2017). The demand and supply forces explain that there is a high demand for housing but the supply of affordable housing remains low. In the support and opposition of the policies, the questions of demand and supply are prominent. The policies, irrespective of either sides or arguments, involve buyers and sellers.

Word count: 1480