ECO401 Assignment no 1 Solution
Requirement
1:
Pakistan is
the 5th most popular country in the World, with 220 Million Peoples.
Out of total population, 36.38% lived in urban areas where as 63.62% resides in
rural areas. There is a huge demand for houses due to a 2.4% annual(vuportal.com) population
growth rate as per census 2017. Further, Pakistan’s construction
industry is suffering from a severe storage of housing facilities, particularly
for low and middle-income groups. Suppose the quantity demanded and quantity
supplied functions for houses are given below:
Qd= 25000 – 2P
Qs= 10,000+1P
Where “P” is the price in rupees of a
housing unit, “Qd” is quantity demanded for housing units. “Qs” is quantity
supplied for housing units.
Calculate the market equilibrium level
of price and quantity of a housing unit.
SOLUTION FILE
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