ECO-205_Final Project

ECO-205_Final Project - Final Project: Summary Trang Fay...

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Final Project: Summary Trang Fay Axia College of University of Phoenix
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There are many factors that affect to the price elasticity of supply and demand such as average income, substitution, necessity, and interest rate. Supposedly, consumers’ income increases and the interest rate affects are about the same. Consumers will buy new houses rather than rent and the housing demand will shift to the right. Because it takes time to build houses, the shifting of the housing supply remains unchanged or slowly shifts to the right. When the nation’s economy is in recession, and inflation occurs, consumers tend to rent rather than buy new houses, or substitute to mobile-home. The house demand decreases and it results the curve shifts to the left. The house supply takes longer to equal with the demand therefore, in a short- term shifting of house supply does not change. However, housing in America is considered necessary. Change in price of housing does not affect much to the supply. We can say the price elasticity of supply in home building is inelastic. Vinh Tuong Industrial Corporation is a leader in manufacturing distributing ceiling grid, partition system, and decorating board in Viet Nam. The company produces six main products which are exposed ceiling grid, concealed ceiling grid, partition system, decorating board, gypsum board, and steel door-frame. These products used to be imported to Viet Nam. Now, Vinh Tuong not only is a provider but an exporter also. Its products are exported to Singapore, Australia, Bangladesh, and
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ECO-205_Final Project - Final Project: Summary Trang Fay...

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