Current Topics
Learning Materials
Data
Company Info
Virtual Worlds
Reference
Educators
You are here:
Home
>
Virtual Worlds
>
Virtual Learning Arcade
>
Determining the Price of a House
> Input Page
Economy »
Bank of Biz/ed »
Developing Country »
Factory »
Learning Arcade »
Farm »
Advanced
Search
Determining the price of a house
The Input Parameters: Supply & Demand Conditions
Household Income (£)
15000
16000
17000
18000
19000
20000
21000
22000
23000
24000
25000
Interest Rate (%)
2
3
4
5
6
7
8
9
10
Population (millions)
55
56
57
58
59
60
Rental Prices (£)
600
650
700
750
800
Cost of Land (£ per hectare)
3500
4000
4500
Government Building Regulations
loose
neutral
tight
Economic Output of other Sectors
increases
neutral
decreases
The Input Parameters: Elasticity Conditions
Income elasticity of demand
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
Sensitivity to interest rates (%)
90
100
110
120
130
140
150
160
170
180
190
Cross price elasticity of demand with rental prices
0.6
0.8
1.0
1.2
1.4
1.6
Price elasticity of demand
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Price elasticity of supply
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Sensitivity to cost of land (%)
20
40
60
80
100
120
140
