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> that's just one component of the problem. Which components influence the problem here without ending up only being an influencer on the supply or the demand?
by randomdata 10y ago
> that's just one component of the problem.
Which components influence the problem here without ending up only being an influencer on the supply or the demand?
> It turns out housing is just a tiny bit more complicated than your first day of Econ 101. The half dozen empty skyscrapers lots of us pass by each day seem to indicate that.
I do not see where your example indicates that. In this case, an owner is not required to make his property, even if vacant, available on the market. That affects the supply in the market. That still comes down to basic supply and demand.
- spdionis 10y ago> Which components influence the problem here without ending up only being an influencer on the supply or the demand? If all the relevant components "just" affect supply and demand then it's useless to analyze supply and demand. Take a step back and analyze those components.
- randomdata 10y agoThe only analysis I see in the original comment is what determines price, and the answer truly is supply and demand. I may be interesting to look at why the supply and the demand are what they are, but that seems to be outside of the scope of this discussion. From a practical perspective, I'm not sure further analysis is necessary either. Price, as determined by basic supply and demand principles, is a useful signalling mechanism even without understanding the underlying reasons.
- deleted 10y ago[deleted]