Question

Using economic thinking and theory(cost-benefits, demand supply, opportunity costs) , write an essay on why houses of the same sizes are more expensive in places near shopping malls than compared to one that is quite far away from a mall.

Answer 1

Answer- It is genarally seen that houses near the malls are costlier than houses that are situated far off from the mall, even if such houses are same in size. This is due to many factors some of which are discussed below:-

• Houses near the mall have access to all the facilities like shopping centre, medical stores, grocery stores etc. which makes it convinient for people to make purchases. Thus it costs less for people to go to malls that what it costs for people who live far away from it.

• Houses near malls have a greater demand than houses which are far away from it as malls many facilities which are accessable to houses near it and has all the places to fulfill the people’s wants. Due to high demand of such houses near malls the cost cost is also high as compared to the houses away from malls.

• People will always like to pay more for houses which are near malls, hospitals, train stations, airpoet etc. As these provide people with less money and time to travel and thus the builders also charge high costs for these houses.