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Of course demand is elastic. Do you think, people will migrate to a city with an unaffordable housing (unaffordable for them)? Unless you are living in North
by Sankozi 7mo ago
Of course demand is elastic.
Do you think, people will migrate to a city with an unaffordable housing (unaffordable for them)?
Unless you are living in North Korea, the competition is also there.
- KellyCriterion 7mo agoNo, it is inelastic: - inelastic means the demand is more or less independet of the price; you can't "just stop renting & living" if prices are going up, your options to bypass are highly limited -> therefore its called >inelastic<
- Sankozi 7mo agoYou can "just stop renting" and move somewhere else. Housing demand is less elastic than, let's say, potato demand, but it's not "absolutely inelastic" as you have said.
- AlexandrB 7mo agoGood transit and road infrastructure also both make demand more elastic because the choice of where you can live without changing jobs expands.
- KellyCriterion 7mo agoIn MBA101-bobos world this is true in theroy, in practice its not. (let me guess: You do not have children, yet, right?) Thats always the biggest difference: In theory, there is no difference between practive and theory - but in practice, there is ;-)