Write a 1,750- to 2,450-word paper in APA format that provides an economic profile of the industry you have researched. In your paper, discuss how the following impact the industry.
o Shifts and price elasticity of supply and demando Positive and negative externalitieso Wage inequalityo Monetary and fiscal policiesConclude your paper with final thoughts on:o How the economy affects the success of your chosen industryo Economic influences that can affect the industry in a negative wayThe home building industry can be a profitable business but the success in home building does not come without difficulties. Construction materials continue to rise in cost more than inflation. Hurricane Katrina and other storms had an effect on these high prices. This did not have an impact on the markets for materials or labor. Many people who lost their homes and evacuated are likely to resettle elsewhere, adding to demand for housing, retail, consumer services, and some public construction in a variety of other states.
The illustration that accompanied Marshall's origi...
Perfectly inelastic demand
Perfectly elastic demandSome intend to return and rebuild, which increase the supply and demand for not only rebuilding of homes but also an increase in new construction and the sales of the real estate market. Material prices rise faster than the overall rate of consumer or producer prices. The rate of increase for construction materials and components prices could be closer to the 10.1 percent rate of 2004 than the 6.1 percent rate of 2005. However, prices are likely to vary greatly by type of material and project. With rising cost of materials and the small rise in wages, we can clearly see this by looking at the cost outlook of construction. (Simonson, 2006)Home builders are eager to rebuild after Hurricane Katrina. Several southern states affected by the hurricane face hurdles in the road to recovery. Many houses were damaged or...