Please can you explain me the concept of GDP and its importance for the real estate industry?Explain...

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Please can you explain me the concept of GDP and its importance for the real estate industry?Explain for economic concepts that you consider important. Justify your answer?Explain the importance of elasticity as a analytical tool for macroeconomic analysis?

David · Accepted Answer

Q1
GDP refers to the value of all goods and service produced in an economy during a given period of time. it is accepted as a measure of growth where an economy grows when GDP rises. It also means that if income distribution were equitable then the increased output translated into increased income for all. When income is not equally distributed rise in GDP means that some persons benefit from a rise in income, while some others may/ may not. However we can say that a rise in GDP implies rise in the income of an ‘average’ person. This constitutes an increase in demand for housing as incomes rise. So rising GDP implies greater demand for housing and this is good news for the real estate industry. 
Q2
PRINCIPLE #1: 
People Face Trade-Offs
Explanation: Tradeoffs mean that we need to trade 1 thing for another to achieve our goals in terms of profits/ utility/revenues. These tradeoffs are needed since our resources (which are needed to achieve our goals) are limited.
Example- Assume you consume two goods muffins and energy drink with pocket money fixed at $100. If you consume 5 units of both you are exhausting our income (assume). To get the 6th muffin,

Please can you explain me the concept of GDP and its importance for the real estate industry?Explain for economic concepts that you consider important. Justify your answer?Explain the importance of...

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