Main stories
Energy market review Energy market - to be investigated by new competition watchdog..more
Budget logo Budget analysis - latest news
Mark Carney Bank of England - downgrades unemployment threshold

UK growth - GDP up 0.8% in the third quarter of 2013

UK unemployment - down to 7.1% as jobs market improves. More..

The global economy - IMF revises growth forecasts..More
Royal Mail - privatisation comes a step closer with announcement of IPO. More...
UK to launch Islamic Bond ..more
Mortgage approvals - highest since Jan 2009...More
Bank of England launches 'forward guidance' policy. Read the full story.
The UK's top 40 Universities for Economics.
Public spending - £11.5bn cuts announced
UK growth - UK avoids triple-dip recession
Benefit cap  - kicks in at £500 per week
UK Budget 2013 - analysis and comment
Student Guide to university Clearing
Quantitative easing - put on hold
Poverty - recession and relative poverty
Welfare reform - the end of universal benefits
Underemployment - over 3 million
CPI inflation - at 2.7%
Energy prices - set to rise
Competition policy - new regulator planned
Greek bailout - Euro problems
Top international universities for Economics
Top UK universities for Economics
OECD - latest forecasts for the OECD countries..More
Updates Get the latest updates on the UK economy, including GDP, inflation...More...
  Study guides Latest resources for students from Economics Online.  More...
How to answer data response questions. More...
Multiple choice tests Improve knowledge and understanding of Economics. More...
Market structures revision presentations
Economics tuition - from specialist tutors. Find out more..or REGISTER
City of London The financial crisis reveals a fundamental weakness .. More...
Recommended texts

















House prices

Question 1

With the help of a diagram:

  1. Explain the likely circumstances in which house prices might fall

  2. Analyse the likely impact of this fall on:

  1. Property owners

  2. First time buyers

  3. Those living in rented accommodation

  4. The rest of the economy

Question 2

  1. House prices
    Consider the information contained in the demand and supply schedule for new-build houses, and answer the questions that follow.
    HOUSE PRICES £000 DEMAND (000) SUPPLY (000)
    500 1000 2400
    450 1250 2300
    400 1500 2200
    350 1750 2100
    300 2000 2000
    250 2250 1900
    200 2500 1800
    150 2750 1700
    100 3000 1600

  1. What is the current equilibrium price of houses?

  2. What would be the likely effect of the government imposing a maximum price of £200,000?

  3. What is the likely effect on house prices of a fall in interest rates, which increases demand by 10% at each price?