The Building Industry and the Economy

The Building Industry and the Economy There argon numerous levels to the build industry. Some of these categories include transportation and purchasing of the materials, construction of the housing, and the buying or financing of the house. The one thing that all these levels provoke in common is the economy. The economy, whether it is foreign or domestic, affects the structure industry. This paper will research the effects of price elasticity of issue and require, negative or positive externalities, wage inequality, monetary and/or fiscal policies, and influences that can affect the industry in a negative way. The building industry is ever-changing due to the ever-changing economy. Principles of Economics (text book by Gregory Mankiw) states that quantity demand is that cadence of goods consumers are willing or able to purchase (Mankiw, 2004). shoot can be influenced by the amount of supply that is available, substitutes that are available, and most important the price of the goods or function (Mankiw, 2004). The demand in the building industry is affected by many things, foremost the cost of materials. From an article written by Michelle Mowad the overall costs of commercial construction is up 15 per centum while lodging construction is up by 60 percent in the San Diego County area.

This is directly affected by the boost costs of materials. Mowad writes that drywall alone has increased in price by 23 percent in 2007. She goes on to write that these costs of building materials ultimately get passed down to the consumers (Mowad, 2007). This article proves that the building industry is elastic in its supply and demand. Not wholly have construction companies seen a slump in trade due to the costs of materials but also the retail stores much(prenominal) as Home Depot or Lowes. In an query with Paul Larson, he says, Demand for home improvement goods and services are closely tied to residential construction trends and solid estate market conditions. So its not affect that... If you want to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.