Monday, March 1, 2010

Supply and Demand on Housing


In the past two months the housing market in the United Kingdom has seen an increase in supply without an increase in demand. The increased number of houses are due to more building being constructed and put on the market. However, the demand for houses has not increased correspondingly. This results in a surplus of houses, declining prices (which they have seen) and which will eventually decrease supply and increase demand, maintaining equalibrium. :)


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