F.4 econ

After the completion of a new highway.The traveling time between in Tin Shui Wai and Central will be much shortened.In addition,more land in Tin Shui Wai will be provided for building private housing.Mr. Ip thnks that the prices of private housing in Tin Shui Wai will increase due to the combined affects of the above government policies.

With the aid of a supply-demand diagram,explain the circumatance under which Mr. Ip would be right.