Supply and Demand Is Not What Most People Think
Posted by paulpauper 21 hours ago
Comments
Comment by GuB-42 20 hours ago
It is like asking "if you press the gas pedal harder, will your car go faster or slower". Of course people will say "faster", but then you say "got you! if the reason you pressed the gas is because you are climbing a slope, you are going slower".
Comment by foolswisdom 19 hours ago
Comment by nfw2 20 hours ago
Supply and demand are still useful concepts to understand prices in other markets, but the main insight is simple: that higher supply generally leads to lower prices given fixed demand and higher demand generally leads to higher prices given fixed supply.
Comment by keeganpoppen 19 hours ago
Comment by nfw2 18 hours ago
Either way it doesn't matter bc housing isn't a commodity, and what Noah Smith said wasn't incorrect.
Comment by abstractspoon 12 hours ago