Okay - I know some of you are getting this down perfectly, but some of you are still super-confused. Some things to think about (always make sure to describe your answer with shifts in S & D curves (since you can't draw on here) and what happens to P & Q with those changes):
1. During the year 2000, Orlando, FL was growing rapidly, with new jobs luring young people into the area. Despite increases in population and income growth that expanded demand for housing, the price of existing houses barely increased. Why?
2. The US government administers two programs that affect the market for cigarettes. Media campaigns and labeling requirements are aimed at making the public aware of the health dangers of cigarettes. At the same time, the Department of Agriculture maintains price supports for tobacco. Under this program, the supported price is above the market equilibrium price, and the government limits the amount of land that can be devoted to tobacco production. Are these two programs at odds with respect to the goals of reducing cigarette consumption?
Or, use S & D analysis to explain this:
Why would someone pay this much?
(Swear to God, if you ask who David Gilmour is, I might scream... :) )
Why would someone pay that much?
I'll post more as I read through your comments. Enjoy!