T3 - The interrelationship between markets Flashcards
What is joint supply
A change in the supply of x causing a change in supply of y
What is competiting supply
Where resources can be made into more than one product
Relationship between factor markets and good markets
Where the demand for one good influences the demand for factors of production
What is joint supply
Change to supply of x increases or decreases supply of y
Interrealtionship of complementary good markets
Where the demand for one good rises then the demand for associate markets rise
Interrelationship of substitute markets
Changes in the price of avalability of substitutes affect the demand for others
Why is demand increasing in the housing market
Changes to social demographics
Migration
Eco Growth
Investment
Why can supply not meet demand in the housing market
Elasticities of supply are low
Strict gov intervention
Local residents
Factor market shortages
How to boost housing market supply
Loosing planning restrictions
Building homes on previously developed land
Encourage self build schemes
Build more social housing
Increased innovation and productivity
Reducing the number of empty homes (tax breaks)
What are maximum rents
A price ceiling
Impacts of max rent
Owner
Fewer properties available to rent
Black markets
Government subsidise
More social housing
What is the interrelationship of markets due to composite demand
Increase for the demand for one good reduces the supply of another
What caused the housing crisis
