QUESTION 9 Housing prices in the UK are generally very high, particularly in certain areas of the country such as the So

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Question 9 Housing Prices In The Uk Are Generally Very High Particularly In Certain Areas Of The Country Such As The So 1 (71.16 KiB) Viewed 22 times

QUESTION 9 Housing prices in the UK are generally very high, particularly in certain areas of the country such as the South East. This makes it difficult for many people to be able to afford to buy their own houses. In England, average houses prices are now almost 8 times the average worker's salary; in parts of the West Midlands, the high prices have been caused by demand growing faster than supply. Source: (Gillespie: 2019) Figure 9.9 below shows how market conditions have changed in the housing market. Figure 9.9 market conditions and house prices HOUSE PRICES P2 P₁ * D₂ Q/ month (4 Marks) Equilibrium has moved from P1Q1 to P2Q2. The most likely explanation for the changes shown is a A. Fall in mortgage interest rates and an increase in the number of houses built B. Fall in mortgage interest rates and a decrease in the number of houses built C. Rise in mortgage interest rates and an increase in the number of houses built D. Rises in mortgage interest rates and a decrease in the number of houses built.