ECO 401-ECONOMIC # Current Solved Assignment Spring | 2021

ECO 401-ECONOMIC # Current Solved Assignment Spring | 2021
ECO 401-ECONOMIC # Current Solved Assignment Spring | 2021

ECO 401-ECONOMIC # Current Solved Assignment Spring | 2021


Pakistan is the 5th most populous country in the world, with 220 million citizens. Out of total population 36.38% lives in urban areas whereas 63.62% resides in rural areas. There is a huge demand for houses due to a 2.4% annual population growth rate as per census 2017. Further, Pakistan’s construction industry is suffering from a severe  industry is suffering from a severe shortage 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 = 10000 =1P

Where ‘p’ is the price in rupees of a housing unit, ‘Qd’ is quantity demanded for housing unit. Qs is quantity supplied for housing units

ECO 401-ECONOMIC # Current Solved Assignment Spring | 2021

Solution Requirement No. 1

Calculate the market equilibrium level of price and quantity for a housing unit.

Qd = Qs                                                  Qd = 25000 – 2P

25000 – 2p = 10000 +1P                               = 25000 – 2(5000)

25000 – 10000 = 2P + 1P                              = 25000 – 10000

15000 = 3P                                              Qd = 15000

15000/3 = 3P/3                                        Qs = 10000 + 1P

5000 = P                                                      = 10000 + 1(5000)

p = 5000                                                      = 10000 + 5000

Qs = 15000

Solution No 2 :

Calculate price elasticity of demand using point elasticity method when the construction industry is in equilibrium and interpret the result.

Formulas for point Elasticity

=( Q / P ) * ( P / Q)

= -2 * (5000 / 15000)

= -2 * 0.3333

= -0.6666

Solution Requirement No 3:

What kind of price rationing strategy should be implemented by government to provide renters with houses at affordable price? Also mention the impact of this strategy on equilibrium quantity demanded and equilibrium quantity supplied of houses?

In this case we have followed the “Price Floor Strategy” because this is supporting strategy.

  • Increase Supply
  • Decrease Price
  • Increase Demand

More Assignments

IT 430 – Assignment 


  1. Hi! I just wish to give you a big thumbs up for
    the great info you have got right here on this post.
    I’ll be returning to your site for more soon.

  2. An intriguing discussion is definitely worth
    comment. I do believe that you should write more about this topic, it may not be a taboo matter but generally
    folks don’t talk about such subjects. To the next! Kind regards!!

  3. Normally I do not learn article on blogs, but I
    would like to say that this write-up very pressured me
    to try and do it! Your writing style has been amazed me.

    Thanks, quite great post.

  4. I’m extremely impressed with your writing skills
    and also with the layout on your weblog. Is this a paid
    theme or did you customize it yourself? Either way keep up the
    excellent quality writing, it’s rare to see a nice blog like this one today.


Please enter your comment!
Please enter your name here