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The law of supply and demand observes that when price rises, people (and other animals!) tend to have more willingness to sell a good or service and less willin

The law of supply and demand observes that when price rises, people (and other animals!) tend to have more willingness to sell a good or service and less willingness to buy said good or service. But you seem to be suggesting the opposite: As price rises, landlords are less willing to sell a lease, and tenants more willing to buy a lease.

dragonwriter 2y ago
> The law of supply and demand observes that when price rises, people tend to be more willing to sell and less willing to buy. The law of supply and demand observes that when people are more willing to sell or less willing yo buy, the price declines. (And, when they are less willing to sell or more willing to buy, price increases.) Supply (willingness to sell) and demand (willingneess to buy) determine price But that's in a perfect market with perfect and symmetric information and pure rationality, and the upthread poster is talking about psychological tactics that leverage the fact that the real world doesn't feature perfect and symmetric information or pure rationality.
- randomdata 2y ago
  The law of supply and demand is not an enacting force, it's an observation of behaviour. Just like the law of universal gravitation does not determine gravity, the law of supply and demand does not determine price. People (or other animals, I suppose) determine price. When you get into the meat of it, what the previous commenter is trying to say is that rent is quite inelastic and thus people will happily pay a lot more than is necessary when you can employ some clever marketing tricks. But the strange wording has it going all over the place.
  - pixl97 2y ago
    >The law of supply and demand is not an enacting force, it's an observation of behaviour. Economic behavior is not physical law. Awareness of economic behavior can change behaviors. For example if you observed that ice cream stocks went up the day that hot weather was forecast you'd quickly find yourself in a battle to predict when it was going to be hot at earlier and earlier dates. >happily pay a lot more than is necessary when you can employ some clever marketing tricks. And the marketing trick is called lowering supply. >People (or other animals, I suppose) determine price. Quite often by controlling supply https://en.wikipedia.org/wiki/Onion_Futures_Act https://en.wikipedia.org/wiki/Onion_Futures_Act
    - randomdata 2y ago
      > And the marketing trick is called lowering supply. The original contextual comment indicated that there was no reduction in supply, merely false claims of the "there is only one unit left!" nature. Normally a buyer would look around to make sure the claim is true, but I guess the idea is that people get so emotional about housing that they don't give it a second thought, which plays into why there is such inelasticity to exploit. Try reading the thread before replying next time.

dragonwriter 2y ago

> The law of supply and demand observes that when price rises, people tend to be more willing to sell and less willing to buy. The law of supply and demand observes that when people are more willing to sell or less willing yo buy, the price declines. (And, when they are less willing to sell or more willing to buy, price increases.) Supply (willingness to sell) and demand (willingneess to buy) determine price But that's in a perfect market with perfect and symmetric information and pure rationality, and the upthread poster is talking about psychological tactics that leverage the fact that the real world doesn't feature perfect and symmetric information or pure rationality.

randomdata 2y ago
The law of supply and demand is not an enacting force, it's an observation of behaviour. Just like the law of universal gravitation does not determine gravity, the law of supply and demand does not determine price. People (or other animals, I suppose) determine price. When you get into the meat of it, what the previous commenter is trying to say is that rent is quite inelastic and thus people will happily pay a lot more than is necessary when you can employ some clever marketing tricks. But the strange wording has it going all over the place.
- pixl97 2y ago
  >The law of supply and demand is not an enacting force, it's an observation of behaviour. Economic behavior is not physical law. Awareness of economic behavior can change behaviors. For example if you observed that ice cream stocks went up the day that hot weather was forecast you'd quickly find yourself in a battle to predict when it was going to be hot at earlier and earlier dates. >happily pay a lot more than is necessary when you can employ some clever marketing tricks. And the marketing trick is called lowering supply. >People (or other animals, I suppose) determine price. Quite often by controlling supply https://en.wikipedia.org/wiki/Onion_Futures_Act https://en.wikipedia.org/wiki/Onion_Futures_Act
  - randomdata 2y ago
    > And the marketing trick is called lowering supply. The original contextual comment indicated that there was no reduction in supply, merely false claims of the "there is only one unit left!" nature. Normally a buyer would look around to make sure the claim is true, but I guess the idea is that people get so emotional about housing that they don't give it a second thought, which plays into why there is such inelasticity to exploit. Try reading the thread before replying next time.