Settlement Studies_Unit 4_Lecture-1

Inferior goods for which demand increases as the price increases.

Supply decreases and eventually the price decreases.

Luxury cars, clothing, and watches.

Any form of taxation or other expenses.

It leads to an increase in the demand for rural housing.

Supply and Demand.

Consumers must spend a large portion of their income on these goods.

Price remains unchanged.

Price increases.

Price decreases.

To meet increasing demand, supply is increased and the price of the product is also increased.

Factors other than price, such as income, recession, and external market values.

An equilibrium stage.

Substitution Effect, Income Effect, and Law of Diminishing Marginal Utility.

As a form of price paid by a tenant to the owner of a house.

Size of the house, location, number of rooms, features like a garden, investment purpose, and market value.

A measure of what the property is worth to the owner, tenant, or society.

Goods for which higher prices are paid to signal wealth rather than for better quality.

Government regulating prices, development control regulations, and other policies affecting price.

Bread, onions, and housing stock.

The price increases.

Price decreases.

Individuals, government, and others.

Higher prices, increased production, and high vacancy rates in existing stock.

The sum of money for which a dwelling unit or land is exchanged between buyer and seller.

Price increases.

A method to ascertain the maximum amount house-builders are willing to pay for land by calculating expected revenues from house sales minus expected non-land costs.

Because increasing supply requires a lot of extra investment.

The demand for housing is expected to increase.

More land will be offered for housebuilding in the absence of controls.

It can directly supply the balance demand (Qn - Q0) with the help of various agencies.

The rental payment for housing.

A situation where resources are allocated in the most efficient manner, and no one can be made better off without making someone else worse off.

Prices only reflect the decisions of buyers and sellers.

Buyers create demand, and sellers create supply.

The amount incurred for the production of dwelling units, including land, labor, materials, and finance.

The price.

6% to 10%.

A sudden surge in willingness of individuals to sell houses or housebuilders finding ways to develop more houses.

It involves comparing the capital value of similar properties.

The total amount of a good or service that producers are willing to sell at various prices.

Builders and individuals.

The demand for the commodity decreases.

The decrease in price.

To reduce the overall demand.

Because such houses add to exotic value and generate high revenue.

They are considered substitute goods.

Compensation is paid to the owner.

They represent the demand and supply curves for Decent Housing.

Initial demand, supply, equilibrium price, and equilibrium quantity.

Both price and demand increase.

It is highly unlikely that supply from the existing stock is very sensitive to price changes.

Because it can be difficult to express in precise monetary terms.

Change in price does not impact the available stock of land.

It can lead to probable reasons for selling and increased production.

Supply is a flow that varies with time, while stock is a fixed quantity.

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

It assesses the potential income generated by the property.

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

The structure of the house-building industry and the willingness and ability of builders to change output volume and composition.

The ability of the house-building industry to respond to higher prices.

Ability to purchase, willingness, and financial resources.

They are considered complementary goods.

It may lead to a shift in demand towards existing stock.

By providing housing allowances, technological support, or loan subsidies.

A sudden surge in willingness to buy more houses due to an increase in income or increased demand to live in a particular area.

It considers the decrease in property value over time.

The overall demand for housing and expected revenues from house sales.

The demand for rural housing increases.

Individuals demand more and better quality housing at higher incomes compared to lower incomes.

It increases the price of individual dwelling units, leading builders to pay higher land rates.

It indicates complementary goods.

The equilibrium price increases to P2.

The point where the quantity demanded equals the quantity supplied.

A fixed quantity of geographic territory that can only change through reclamation or submersion.

To assess the value when buying or selling property.

High demand for housing and the high number of dwellings that can be constructed on the same piece of land.

Cross Elasticity of Demand = % change in quantity demanded / % change in price of another good.

It indicates substitute goods.

The quantity of a good or service that consumers are willing and able to purchase at various prices.

Less demand leading to less supply, and the expectation of less future profit compared to present profits.

A measure of the flow of land available to the market, which varies over time.

Demand decreases.

A point where many people who could previously afford the product can no longer afford it.

The difference between the present value of cash inflows and outflows over a period of time.

They typically use a combination of increasing demand, increasing supply, and direct provision.

A situation in a game where no player can benefit by changing their strategy while the other players keep theirs unchanged.

The relationship between supply and demand.

It plays a very important role toward finance in land and housing.

They start preferring alternatives at lower prices.

By making more land available or providing subsidies and tax concessions to builders.

At point E, where the demand and supply curves intersect.

The difference between the amount producers are willing to accept for a good and the actual price they receive.

Expected revenues from house sales minus expected costs of all inputs other than land.

To assess the tax of a property, such as municipal tax or property tax.

To provide Decent Housing for All by eliminating the gap between Q0 and Qn.

DCR impacts the price of land, which in turn affects the supply.

The discount rate that makes the net present value of all cash flows from a particular project equal to zero.

The difference between what consumers are willing to pay for a good and what they actually pay.

Price, availability of substitutes, and price & availability of complementary goods.

To make more profit.

It serves as security when loans are taken against the property.

The equilibrium quantity increases to Q1.

The equilibrium quantity also increases to Q2.

Costs that do not change with the level of output.

Location/job changes, changes in family size, and changes in income.

Price and demand for housing.

To maximize profit.

The interest rate used to determine the present value of future cash flows.

The total demand will be Qn, assuming that is the number of households in the area.

A measure of satisfaction or pleasure derived from consuming goods and services.

The equilibrium price falls to P1.

Rental Method of Valuation.

It evaluates the potential value of property development.

The cost of producing one additional unit of a good.