Advertisement
Advertisement
⚡ Community Insights
Discussion Sentiment
0% Positive
Analyzed from 196 words in the discussion.
Trending Topics
#supply#demand#reason#more#housing#prices#higher#question#houses#article
Discussion Sentiment
Analyzed from 196 words in the discussion.
Trending Topics
Discussion (4 Comments)Read Original on HackerNews
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".
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.