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RED 585 Foundations of Economics For Planning and Real Estate

Task:
At the beginning of the memo, you will need to summarize the purpose of the analysis and outline each of the discussion parts. Your introduction will also need to identify one or more purposes of local government provision of the street car. 

The first part of your report will identify the key demand and supply assumptions of the market before the street car (2012), comment on their reasonableness in the context of downtown Tucson, and produce demand, supply, and equilibrium graphs. This will include the demand figures for 2012 and supply figures for 2012 in one graph showing equilibrium with discussion.  

The second part will also identify the key demand and supply assumptions of the market after the street car (2022), comment on their reasonableness in the context of downtown Tucson, and produce demand, supply, and equilibrium graphs. This will include the demand figures for 2022 and supply figures in one graph for 2022 showing equilibrium with discussion.  

The third part will show combined demand, supply and equilibrium graphs and comment on implications for the demand and supply of residential development beyond 2022. This will include the demand figures for 2012 and 2022, and supply figures for 2012 and 2022, in one graph showing equilibria for both with discussion. For instance, if your analysis shows an increase in demand and supply, and an increase in rent between 2012 and 2022, before and after the streetcar, you will need to comment on the extent to which the trend will continue (especially with respect to rising rents) with downtown perhaps gaining increasingly larger shares of metropolitan Tucson’s growth, or slow down perhaps growing at roughly the pace of the metropolitan area’s growth as whole. 

Your report’s fourth part will comment on the extent to which the market may fail to meet the demand for downtown housing if office demand exceeds office supply because of the street car. This part of your memo needs to offer suggestions for how the public sector can overcome these failures based on the lectures and readings for Module 1.

At the end of the memo you need to remind your client of its purposes, the key findings of each of the parts, and summarize solutions.

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