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Extended Essay in Economics

To want extent is the price the main determinant of the demand for housing in Chaoyang District, Beijing?

Written by: JIANG, Miao
School: Beijing Huijia Private School
Secession and year: May 2013
Subject: Economics (HL)
Word Count: 3807
ABSTRACT
Research Question
This extended essay explores “To want extent is the price the main determinant of the demand for housing in Chaoyang District, Beijing?”

Scope and methods of Investigation
In order to handle this investigation, I have handed out 100 questionnaires to different kinds of people. Giving questionnaires to people in a shopping center in Chaoyang District will have various situations of people, and it can make the results more accurate. The survey provides important data of price and non-price factors of demand for housing in Chaoyang. Also, getting information through an interview in one housing Property Company in Chaoyang District I get the sales volume from them. It provides a clear understanding of the housing in Chaoyang district, although it can’t represent whole housings in Chaoyang district, but there is no big difference for people buying the housing in there. In addition, I carry out another interview with a housing agency for gaining the knowledge about second-hand housings. For my secondary resources, the Economics Course Companion textbook is a good resource for me to get the information of demand and supply. Also, many websites are very useful for me to investigate my research question.

Summary of Conclusion
From the research, the price of the housing is the main determinant for people buying the housing. PED for housings was found to be very elastic, which means that a small change in the price of the housing will leads to a proportionately larger change in demand. From the questionnaires, it’s easy to see that people’s income and mortgage rates of commercial banks are important factors that affecting the demand for housings in Chaoyang District.

Word count: 268

Contents
Title page………………………………………………………………………………………………………………1 Abstract…………………………………………………………………………………………………………………2 Contents page……………………………………………………………………………………………………….3 Introduction…………………………………………………………………………………………………………..4 Hypothesis…………………………………………………………………………………………………………….4 Method of Data Collection…………………………………………………………………………………….4 Data and Analysis….………………………………………………………………..…………………………….5 Conclusion…………………………………………………………………………………………………………..15 Bibliography………………………………………………………………………………………………………..16 Appendices………………………………………………………………………………………………………….17

Introduction
Nowadays, buying housing becomes a very sensitive and popular topic among people in Chaoyang, Beijing. Some people are expecting housing for their own desire, but some are not. Some even don’t have their own housing. People have different reasons for buying or not buying housing, also they have their own point of view when deciding which housing to buy. It is important to know people’s mind when selling housings, because people are their only object. Also, the price of housing is a major case in Economics, it directly related to what I’ve learned in my class. It also involves the major theory of microeconomics, so it is worthy for me to have a more clear and deep understanding of microeconomics. In addition, buying housings is the thing that everyone will discuss for a long period of time; it is so popular that it really interested me to investigate “To want extent is the price the main determinant of the demand for housing in Chaoyang District, Beijing?” By investigate this research question; we get clear understanding of people’s mind when they are facing the problem of housing. Also, we can know the relationship between their income, mortgage rate and their attitude toward housings. The people in my investigation are all live in Chaoyang district, they represents the people in Chaoyang district. Hypothesis

It was hypothesized that the housing has the price...
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