Question 4a. Discuss how each of the major exogenous factors that shape aggregate demand forrental office space in a city must have been affected by the coronavirus crisis, andwhat impact this effect would have on demand for rental office space.b. You are provided with the following information about your city:Total population 2020 = 85,000Median household income 2020 = € 36,000Average household income 2020 = € 42,000Sales of clothes and shoes per square meter in 2020 = € 2,340Make whatever assumptions are needed and estimate the total required squaremeters of clothing and shoe stores in your city in 2021. Show clearly and explainall the formulas and assumptions that you use for your calculations.b. Explain why the number you have calculated in (b) for the required square metersof clothing and footwear stores in your city is not very accurate and explain whatadditional data you should use for a more accurate calculation. How will thisadditional data contribute to a more accurate calculation?c. Calculate the net absorption of office space and describe how the total demand foroffices in this market has changed each year in the table below.2017201820192020Total stock of office space sq.m752,00098,000779,60076,432814,30088,420843,50049,150Vacant stock of office space sq.m.

Exogenous factors are those factors that reside outside the economic model and are not influenced by…

Question 4 a. Discuss how each of the major exogenous factors that shape aggregate demand for rental office space in a city must have been affected by the coronavirus crisis, and what impact this effect would have on demand for rental office space.

Question 4 a. Discuss how each of the major exogenous factors that shape aggregate demand for rental office space in a city must have been affected by the coronavirus crisis, and what impact this effect would have on demand for rental office space.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 31P: Table 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes,...

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