Price
S
Pe Equilibrium
D
Quantity
Qe
INCREASE IN DEMAND
Price
Increase in
demand S
P2
New equilibrium
P1
D2
D1
Quantity
Q1 Q2
The document focuses on the housing market during the last years in the UK and how the interaction between supply and demand is used to determine the prices of the properties. It clearly describes the different effect on the market based on the supply and demand and it has detailed diagrams to represent the information.
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