The Impact of Economic Factors on the Price of 5-Room Resale Flats in Ang Mo Kio

by | Oct 29, 2023 | economics

(Feb 2018 Exam) Data from the Housing and Development Board (HDB) shows that the average price of a 5-room resale flat in Ang Mo Kio in the third quarter of 2017 was $789,000 with 61 units transacted*. With the economy continuing to do well and more foreigners applying to become permanent residents and hence becoming eligible to buy HDB resale flats, prices of 5-room resale flats in Ang Mo Kio are expected to rise in the fourth quarter of 2017. The sellers of 5-room resale flats are the existing owners of the flats. * Data from HDB website
(i)Draw and label the demand and supply curves of 5-room resale flats in Ang Mo Kio for the third quarter of 2017. Label clearly the axes, the curves, the equilibrium price and the equilibrium quantity.

(ii) Based on the information provided above, explain how the demand curve of the 5-room resale flats in Ang Mo Kio will behave and how the equilibrium price and quantity will be affected in the fourth quarter of 2017.
Superimpose the new demand curve onto the graph you have drawn in (i). Label clearly the axes, the curves, the new equilibrium price and the new equilibrium quantity. Explain the impact.
(iii)if the government introduces a new measure that allows only Singapore citizens to buy HDB resale flats, explain and illustrate on the same diagram the impact of such a restriction on the equilibrium price and equilibrium quantity of 5-room resale flats in Ang Mo Kio.

 

 

 

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Answer

Sample Answer

 

The Impact of Economic Factors on the Price of 5-Room Resale Flats in Ang Mo Kio

Introduction

The housing market in Ang Mo Kio, Singapore, has been experiencing significant fluctuations in recent times. This essay will examine the impact of economic factors on the price of 5-room resale flats in Ang Mo Kio, specifically focusing on the third and fourth quarters of 2017. By analyzing demand and supply curves, as well as the influence of government measures, we can gain insight into the potential changes in equilibrium price and quantity.

I. Demand and Supply in the Third Quarter of 2017

To understand the market dynamics, let us first examine the demand and supply curves for 5-room resale flats in Ang Mo Kio during the third quarter of 2017.

Demand curve:

The demand curve represents the quantity of 5-room resale flats that potential buyers are willing and able to purchase at different prices.
As the price decreases, the quantity demanded increases, indicating an inverse relationship between price and demand.
Labeling the axes, curves, and equilibrium point, we can observe that at a certain price (equilibrium price), the quantity demanded equals the quantity supplied.

Supply curve:

The supply curve represents the quantity of 5-room resale flats that existing owners are willing to sell at different prices.
As the price increases, the quantity supplied increases, indicating a positive relationship between price and supply.

Equilibrium price and quantity:

The equilibrium price is the price at which the quantity demanded equals the quantity supplied.
The equilibrium quantity is the quantity at which the demand and supply curves intersect.

II. Influence of Economic Factors in the Fourth Quarter of 2017

Based on the information provided, it is expected that economic factors such as a strong economy and an increase in foreign permanent residents will impact the demand for 5-room resale flats in Ang Mo Kio during the fourth quarter of 2017.

Demand curve behavior:

With a strong economy, more individuals will have increased purchasing power, leading to higher demand for housing.
As more foreigners apply to become permanent residents and become eligible to buy HDB resale flats, this will further increase the demand for 5-room flats.
Therefore, we can expect the demand curve to shift to the right, indicating an increase in demand at every price level.

Equilibrium price and quantity:

As demand increases, there will be upward pressure on prices.
The new equilibrium price will be higher than the previous equilibrium price due to increased demand.
The new equilibrium quantity will also be higher, reflecting the increased number of transactions.

III. The Impact of Government Restriction on Singapore Citizens Only

If the government introduces a measure that restricts the purchase of HDB resale flats to Singapore citizens only, this will have a significant impact on both the equilibrium price and equilibrium quantity of 5-room resale flats in Ang Mo Kio.

Impact on equilibrium price and quantity:

By restricting eligibility to Singapore citizens only, the number of potential buyers decreases significantly.
This reduction in demand will lead to a leftward shift in the demand curve.
As a result, there will be a decrease in both equilibrium price and equilibrium quantity.
The new equilibrium price will be lower than before, reflecting the reduced demand from non-citizens.
Similarly, the new equilibrium quantity will also be lower due to the decrease in potential buyers.

By implementing such a measure, the government can effectively control housing prices by reducing demand from non-citizens. However, it is important to note that such restrictions may have social implications and should be implemented with careful consideration.

In conclusion, economic factors such as a strong economy and an increase in foreign permanent residents play a crucial role in shaping the price and quantity dynamics of 5-room resale flats in Ang Mo Kio. By understanding these factors and their impact on demand and supply curves, policymakers can make informed decisions to maintain housing affordability and stability.

 

 

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