Professional Documents
Culture Documents
Luc Duy Khanh Student ID: 11212842 Class: EBBA 13.1: Assignment 3
Luc Duy Khanh Student ID: 11212842 Class: EBBA 13.1: Assignment 3
Luc Duy Khanh Student ID: 11212842 Class: EBBA 13.1: Assignment 3
ASSIGNMENT 3
ANSWER
1. Question 1
The graph below illustrates the demand for housing in Baton Rouge caused by
Hurricane Katrina:
Graph explanation:
Terms explanation:
It is understanded that the number of homes listed for sale was a constant number
during this time. By relocating a massive amount of population, this number
quickly decreased by 3,100 (From 3,600 homes to 500 homes). Along with the
scarcity in the number of “living places”, the price undoubtedly increased to
$16,000 (From $130,000 to $ 156,000) just in six months.
2. Question 2
The following graph shows the market effects of people returning to New
Orleans:
Graph explanation:
- H1: Number of homes before settlers moving back to a rebuilt New Orleans.
- H2: Number of homes after settlers moving back to a rebuilt New Orleans.
The number of homes remains a constant number as people moving back to New
Orleans. Hurricane Katrina didn’t wipe out the whole country, as the demand for
housing in a small part continued to stay stable, so the demand curve will not start
from the root of the graph. During relocation time, the demand curve is predicted
to shift to the left (From point a to point b) and it is very likely that the house
pricing will decrease from $A to $B.
ANSWER
Graph explanation:
Terms explanation: