Log in
Economics
1
answer
0
watching
448
views

Why did housing prices rise rapidly during 2002-2005? Why did the mortgage default rate increase so sharply during 2006 and 2007 even before the current recession began?

Watch
1
answer
0
watching
448
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Anne Gillian Duero
Anne Gillian DueroLv10
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Why did housing prices rise rapidly during 2002 - 2005?

The New York Stock Exchange (NYSE) is an important component of the US system of markets for stocks and bonds. The securities traded on the NYSE are corporate stocks. Before the NYSE's reorginization in 2006, only owners of NYSE Seats could trade stocks on the NYSE and a seat, which gave you the right to execute purchases and sales of stocks, was an asset that could be bought or sold. From 2002 to 2005, the market price of an NYSE seat declined by 63%, but then the price increased to an all-time high in December 2005. Do some research on the seats at the New York Stock Exchange in the early and middle part of the 2000's and answer the following questions:

A. Why did the price of an NYSE seat go through such extreme variations in the early and middle part of the 2000's before the restructuring?

B. Why did the price of an NYSE seat recover so rapidly after the restructuring was announced in 2005?


1. Illustrate the following with supply and demand curves:

a. With increased access to wireless technology and lighter weight, the demand for laptop computers has increased substantially. Laptops have also become easier and cheaper to produce as new technology has come online. Despite the shit of demand, prices have fallen.

b.During the high-tech boom in the late 1990s, San Jose office space was in very high demand and rents were very high. With the national recession that began in March 2001, however, the market for office space in San Jose was hit very hard, with rents per square foot falling. In 2005, the employment numbers from san Jose were rising slowly and rents began to rise again. Assume for simplicity that no new office space was built during the period

c.During the last 10 years, Orlando, Florida, grew rapidly, with new jobs luring young people into the area. Despite increases in population and income growth that expanded demand for housing, the price of existing houses barely increased. Why? Illustrate your answer with supply and demand curves.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in