THE ROOTS OF ECONOMIC CRISIS

A). Start with the US housing market . Explain , using supply and , what you believe led to rapid rises in housing prices over the last decade . Please try to make guesses ( assumptions ) about the elasticities of supply and demand and then explain your assumptions . You’ll get credit as long as you provide the correct logic for the kind of elasticities that you have chosen . If it helps , choose one small place , town or suburb that you know and answer the question for that place . B). Why have housing prices fallen …