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Topic 782 - The following appeared in a letter to the editor of the Maple City newspaper. "Twenty years ago Pine City established strict laws designed to limit the number of new buildings that could be constructed in the city. Since that time the average housing prices in Pine City have increased considerably. Chestnut City, which is about the same size as Pine City, has over the past twenty years experienced an increase in average housing prices similar to Pine City, but Chestnut City never established any laws that limit new building construction. So it is clear that laws limiting new construction have no effect on average housing prices. So if Maple City were to establish strict laws that limit new building construction, these laws will have no effect on average housing prices. " Discuss how well reasoned you find this argument.

October 15, 2016