... the point at which we get the equilibrium price. On the diagram we can see that the equilibrium price is at 150,000. The prices of houses can also be changed if the demand or supply curve shifts. Firstly the demand curve will shift if there is a change in the conditions of demand, which are:> Real income or/and its distribution> Population or/and its distribution> Price of substitute goods and complementary goods> Tastes and fashions> Price and availability of credit The supply curve will shift if there is a change in the conditions of supply, which are:> Nature and abnormal circumstances> Taxes> Technical progress> Price of factors of production To find out why house prices have been rising over the last 5 years I will need to look at a number of factors. Such factors will be changes in real income, growth of GDP, population size and the costs of factors of production. I ...

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