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Using demand and supply analysis, explain why the prices of old HDB flats in Singapore have risen more than threefold over the last twenty years.
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2. Using demand and supply analysis, explain why the prices of old HDB flats in Singapore have risen more than threefold over the last twenty years. ________________________________________________________________________ Demand for old HDB flats is reflected by the demand curve, which is an indication of the number of people willing and able to buy at particular prices. The supply curve of old HDB flats is thus an indication of the number of people who are willing and able to sell their HDB flats at the particular prices. For example, in the above diagram, the demand for old HDB flats is originally at DD, with equilibrium price at P and quantity at Q. An increase in demand from DD to D1D1, will, ceteris paribus, cause the equilibrium price to shift to Pl, and the equilibrium quantity to shift to Ql. As can be seen, the price (though not to scale) has increased drastically. ...
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