Income quintile 6 1. New homes built on floodplains 7 Baseline New home purchases on floodplains by income quintile, 8 number pa Average price of new homes purchased on floodplains, 9 £ 10 Option X Increased cost of making new homes flood resistant 11 and/or resilient, £/home Average price of new homes including flood resilience 12 and/or resistance measures, £ 13 Average percentage increase in price, % 14 Price elasticity of demand (PED) Change in number of new homes bought on floodplains, 15 number pa 16 Remaining new homes built on floodplains, number pa Bottom Second Middle Fourth Тop Total 8000 7200 4500 2300 3000 25000 120000 180000 232000 315000 820000 259380 10000 10000 10000 10000 10000 10000 130000 190000 242000 325000 830000 269380 8.3% 5.6% 4.3% 3.2% 1.2% 3.9% -0.95 -0.75 -0.25 -0.15 0.00 8000 7200 4500 2300 3000 25000

Income quintile 6 1. New homes built on floodplains 7 Baseline New home purchases on floodplains by income quintile, 8 number pa Average price of new homes purchased on floodplains, 9 £ 10 Option X Increased cost of making new homes flood resistant 11 and/or resilient, £/home Average price of new homes including flood resilience 12 and/or resistance measures, £ 13 Average percentage increase in price, % 14 Price elasticity of demand (PED) Change in number of new homes bought on floodplains, 15 number pa 16 Remaining new homes built on floodplains, number pa Bottom Second Middle Fourth Тop Total 8000 7200 4500 2300 3000 25000 120000 180000 232000 315000 820000 259380 10000 10000 10000 10000 10000 10000 130000 190000 242000 325000 830000 269380 8.3% 5.6% 4.3% 3.2% 1.2% 3.9% -0.95 -0.75 -0.25 -0.15 0.00 8000 7200 4500 2300 3000 25000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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