An explanation of the correlation between the movements along the supply and demand model and the recent steep rise in housing market prices please? My brain refuses to grasp the concept.
In: Economics
ELI5: I’m going to assume you’re talking about a shortage in the housing market. In the supply and demand model, this means the supply curve shifts to the left, as there are less houses overall. This means that the point where the supply and demand curves now meet is at a higher price, but also at a lower quantity
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