I have been asked to investigate a question similar to "ÃÂWhat determines the price of a particular good or product'. I have chosen to answer the question,What determines the price of houses? I have also come up with a hypothesis related to my question, later in my investigation I will either prove or disprove this theory. My hypothesis is,House prices are mainly determined by mortgage rates.
To collect my information I will use a wide range of resources. These will be: ÃÂ÷ The Internet, particularly specialised sites dealing in economics (e.g. www.bized.ac.uk,www.moneyextra.co.uk) ÃÂ÷ I will try to arrange an interview with someone working within a bank or an estate agent. I will hope to gain a lot of information from these two sources ÃÂ÷ I will create and use a questionnaire and ask about 2 0/30 people, with a mortgage the questions on the questionnaire. This is because if I asked someone of my age what they thought, the set of results I would be getting back from my questionnaire would not be as accurate as they could be if I asked someone who owned a mortgage.
English:
US-mortgage-rates-30yrFix
English: Mortgage rates historical trendsÃÂ÷ I will try to use as much of my class work as possible. I will need to look at my notes on Demand and Supply.
Main Analysis I will start by looking at the main determinants for the supply and demand.
A table to show the main determinants for the supply and demand Determinants of demand Determinants of supply Price of the good / service Price of the good / service Income Costs of producing the good / service Price of substitutes / complements Objectives of the firm Tastes Profitability of alternative products Expectations of future price changes Shocks With the buying and selling of houses there may also be additional...