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More housing is not a panacea for homelessness - but supply and demand are real. Increasing supply will decrease equilibrium price; this increase in affordabili
by zacksinclair 7y ago
More housing is not a panacea for homelessness - but supply and demand are real. Increasing supply will decrease equilibrium price; this increase in affordability is one measure (of the many necessary) to help homelessness.
- jayd16 7y ago>Increasing supply will decrease equilibrium price Hmm but this is not a given is it? I think many would move to SF if housing was only slightly cheaper.
- zacksinclair 7y agoIt is a given and is basic economics. Supply and demand curves certainly apply to housing. Increasing housing shifts the supply line to the right - which satisfies greater demand at a lower price, all else equal. That is what "many would move to SF if housing was only slightly cheaper" means in economic terms. Shifting the demand curve to the right is not driven by quantity of housing, but instead by things like quality of life, supply of jobs, etc. Its the difference between the slope of the line and its position.
- jayd16 7y ago>It is a given and is basic economics. Supply and demand curves certainly apply to housing. Yes but the angle of those curves are important. There are elastic and inelastic demands for resources. There can be unfulfilled demand at the current equilibrium price. Its basic economics.