Graphically Illustrate How House Prices and Residential Investment Were Affected

question 1

Essay

Graphically illustrate how house prices and residential investment were affected by lowered lending standards that allowed many people with less than perfect credit (subprime borrowers), who had previously been unable to obtain mortgages, to purchase houses.

---

Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a specific period.

Rent Controls

Rent controls are government policies that limit the amount landlords can charge for leasing apartments or houses, aimed at making housing more affordable for renters.

Housing

Refers to the residential accommodations available for individuals or families, including houses, apartments, and other living spaces.

Rents

Payments made for the use of property or land. In economics, it can also refer to income derived from the ownership of scarce resources.