Date: March 8th, 2006

Housing demand is elastic

8 March, 2006 (10:53) | Essential posts |

Whenever you are sifting new stories about housing prices and supply/ demand imbalance, just remember this:
 
Housing demand is elastic
 

How many square feet is this?
 
In economic terms, demand is elastic when consumption rises as prices fall, and vice versa.
 

 
As prices rise, demand falls — as prices fall, demand rises.  Market price is the price at […]