Negative externality generated by Condos and how they resolve this externality.
With populations growing, an increasing number of people are choosing to live in multifamily dwellings including apartments and condos. According to the U.S. Census Bureau's 2003 American Housing Survey, of 105.842 mill occupied housing units, 64% were single family detached homes, and 5% were in condos and cooperatives. Condos & cooperatives have rules that specify the rights & obligations of the owners & residents.
(a)By considering the demand & supply of land, elucidate why condos are becoming relatively more popular?
(b) Give examples of negative externalities that condo residents can generate for one another?
(c) Should the law require the residents of a condo to comply w/ the condo rules?
(d) Some residents in a condo are annoyed by the barking of other resident dogs, How could they jointly resolve this externality?