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Respectfully, this doesn't prove that the law of supply and demand no longer applies. Any individual seller may choose not to decrease their prices -- but if t
by NumberWangMan 4y ago
Respectfully, this doesn't prove that the law of supply and demand no longer applies. Any individual seller may choose not to decrease their prices -- but if they do it long enough, they run out of money and are forced to sell.
It's also difficult to tease out the effect of general price inflation. If house prices stay stagnant but currency is devauled, prices are decreasing in real terms.
- jkmcf 4y agoSome places have tax breaks for unoccupied property rentals. Instead of lowering prices they leave them high and break even on the losses (or close enough such that they weather the short term until demand at their preferred price is reached)