Saturday, November 11, 2006

Unit 1: The demand for housing

Abbey have announced that they will provide a mortgage up to 5 times the applicants salary in some circumstances

http://politics.guardian.co.uk/economics/story/0,,1937195,00.html

a) What will happen to the demand for houses as a result of this policy?
b) Why? Which factor that influences demand has altered?
c) Draw a diagram to show this change

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