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What do you mean with the statement A fixed supply means that real estate prices will fluctuate with demand?
Wiki User
∙ 11y ago
The statement refers to basic microeconomics:
Under the condition of a fixed supply, demandalone determines price. Supply is constant.
Under other conditions, Supply is represented on a graph as a line that slopes upward, while demand is a line that sloped downward. That is that as the quantity suppliedincreases, so does price. As the price increases, the quantity demanded decreases. Where the two curves meet is called the Equalibrium.
Under the condition of a fixed supply, supply is not represented by a curve, but a vertical line. Demand is still a curve, but the quantity demandedcannot exceed the supply.
edit: That answer is hyper-technical, and reads like a modern textbook. The terms, "demand" and "fixed supply" refer exactly to this type of graph. In English, the question simply means that the price of real estate will go up or down depending solely on how much people are willing to pay.
Wiki User
∙ 11y ago
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as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.
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The (market) prices affect supply and demand, not the other way around except if the supply and demand you're talking about are caused in another market than real estate.
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yes
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The state in which real estate market supply and demand balance each other and, as a result, prices become stable. Generally, when there is too much supply for goods or services, the price goes down, which results in higher demand. The balancing effect of supply and demand results in a state of equilibrium.
How is today's gold prices increase or decrease?
as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.
When supply and demand decreases real estate prices will?
The (market) prices affect supply and demand, not the other way around except if the supply and demand you're talking about are caused in another market than real estate.
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There is excess demand in the market.?
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What statement represent a central idea of laissez faire economics?
prices are best determined by supply and demand.
Is the quotation rising oil prices have caused a sharp decrease in the demand for oil a correct statement?
yes
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As of August 12, 12014 the estimated value of 8 grams of 10k gold is 141.00. The prices of gold fluctuate with the economy and demand.
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There are many different reasons why gas prices fluctuate on any given day. Typically, supply and demand plays a large part in the fact gas prices go up faster than they go down.
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