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Assignment BEO6600 Business Economics T1 2020 This assignment is to be completed in groups of three or four members and submitted via VU collaborate. Please answer all parts and questions. Assignment Weight: 30% (Maximum 3000 words) Structure of Assignment 1. Cover Sheet (next page) properly completed. 2. Assessment Declaration (signed by all group members) 3. Report in Word format (pdf format will not be accepted) Assignments will not be accepted or marked if it is not accompanied by a signed assessment declaration. Due: Week 11. All assignments must be submitted via Turnitin. Victoria University Business School 2 Cover Sheet Group: Group Members VU ID First Name Surname Mobile Tutorial Time Victoria University Business School 3 PART 1: FIRST HOME BUYERS & HOUSING AFFORDABILITY Housin

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PART 1: FIRST HOME BUYERS & HOUSING AFFORDABILITY

1.1 The concept of elasticity holds great importance in microeconomics dynamics. It means the measure of the responsiveness of one variable in terms of the other variable. Elasticity is an economic measure to calculate percentage change in one variable due to a change in the other variable (Hayes, 2020). The concept of elasticity applies to both demand and supply, along with many others like income. An economist can measure the elasticity with this formula:

                        Elasticity     =              % change in one variable         

                                                             % change in another variable

The value of elasticity could be less than one, more than one, equal to one or equal to zero. In this way, the elasticity could show different positions such as vertical, l

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