Write an one-page essay on the topic: "Are real estate prices predictable: Determinants of transaction prices and time on the market."
In preparing your writing, address the following questions:
1. What are the main characteristics of perfectly competitive markets? Do housing markets share these characteristics? (see Campbell, Giglio, and Pathak 2011).
2. Explain the determinants of supply and demand of real estate properties. Are real estate prices predictable? What are typical causes of bubbles on real estate markets?
3. What are the factors determining how long a property stays on the market? Address general market conditions as well as microeconomics factors affecting buyers’ and sellers’ decisions.

Demand and Supply of Rolls of Film - Assignment
The table below shows the demand and supply schedules for rolls of film.
Price                   Quantity demanded          Quantity supplied
($ per roll)                (rolls per week)             (rolls per week)
2.00                               3,000                               1,000
3.00                               2,500                               1,500
4.00                               2,000                               2,000
5.00                               1,500                               2,500
6.00                               1,000                               3,000
a. Explain the concepts of demand, supply, and market equilibrium. What is the market equilibrium price for rolls of film? What is the equilibrium quantity?
b. If the price of film is $3 a roll, describe the situation in the film market. Is there shortage or surplus at this price? Explain how market equilibrium is restored.
c. A rise in income increases the quantity demanded by 1,000 rolls a week at each price. Draw a new table to account for this change in demand. What will be the new equilibrium price? Which quantity will be traded? Explain how the film market adjusts to its new equilibrium.
d. The number of film production lines increases, and at the same time, people switch to digital cameras. How do these events influence demand and supply? Do they create a shortage or a surplus at the equilibrium price in part a? Describe how the price and quantity change.

Write an one-page essay on the topic: &quot;Are real estate prices...

Write an one-page essay on the topic: "Are real estate prices...