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Favorite spot for developers to build subdivisions

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Reference no: EM132162025

The Town of Lookout Mountain, Georgia, had a lot of undeveloped lands and became a favorite spot for developers to build subdivisions. In response, the town council voted to restrict the building of new houses to lots of one acre or more. Previously, developers had been able to build several houses on an acre.

  1. What effect would this new law have on the price per acre of available land in that municipality?
  2. What effect would this new law have on the price of new houses in that town?
  3. What about the price of existing houses in Lookout Mountain? Explain your answer.

Reference no: EM132162025

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Favorite spot for developers to build subdivisions : The Town of Lookout Mountain, Georgia, had a lot of undeveloped lands and became a favorite spot for developers to build subdivisions.
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