House price cuts helped sales surge by nearly 10pc last month

Really2

joguest wrote: »

Poor little you. Let's get this right - you're now playing the victim!!!

Diddums.

Innocent and victim in the same post.

joguest wrote: »

but I have repeatedly and politely pointed out some very straightforward concepts only to be completely ignored and ridiculed by the very people demonstrating their ignorance.

Your so polite, this thread is a shining example.

I think we should leave it there, it is obvious you wont say what happens if supply keeps decreasing.;)

joguest

"Demand (sales of houses) is up 10% your article.
Supply is down (quote provided)"

Demand is not the sales of houses and supply is not the number of houses on the market. Please read a textbook (or look it up online).

joguest

From wikipedia (I posted something almost identical in every word to this yesterday before I'd even had a look at the wikipedia page):

The four basic laws of supply and demand are:

1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.
2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity.
3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
4. If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.

Really2

joguest wrote: »

Supply is the number of sweets the manufacture is prepared to produce for a given price.

What!!
So If I set up a car dealership saying I sell Aston Martins at £10 I have supply!!

You could be prepared to sell 1,000,000 for a penny but have non in stock supply is 0.

You could have 1,000,000 in stock at a penny but no orders supply is 1,000,000.

But carry on avoiding.;)

Really2

joguest wrote: »

"Demand (sales of houses) is up 10% your article.
Supply is down (quote provided)"

Demand is not the sales of houses and supply is not the number of houses on the market. Please read a textbook (or look it up online).

wiki
Demand = In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay[1] (see also supply and demand). The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.

So a Sale is very much an indication of demand.

Supply = Supply (economics), the amount of a product which is available to customers

No text book required, by your own judgment of True (wikipedia)
You are wrong.

So if you over supply prices fall, demand should then rise.
Under supply Price increase demand falls back.
Supply is stock regardless of price, price is where supply and demand meet.

So Last time, What will happen if supply keeps falling?????

joguest

Really2 wrote: »

wiki
Demand = In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay[1] (see also supply and demand). The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.

So a Sale is very much an indication of demand.

Supply = Supply (economics), the amount of a product which is available to customers

No text book required, by your own judgment of True (wikipedia)
You are wrong.

How am I wrong exactly? Wikipedia agrees with every word I've written.

Amongst other things, I think you're also getting confused by the quantity demanded/quantity supplied and changes to supply/demand - i.e. changes to the position of the curves.

joguest

"Supply is stock regardless of cost."

No it isn't.

It is the quantity made available to be sold for a range of prices. In the case of perishable/edible products such as sweets it is the quantities producers will produce for a given range prices. For houses, that get repeatedly recycled with owners that keep becoming adults and keep dying, it is the quantity of houses that sellers are willing to sell for a given range of prices.

Really2

joguest wrote: »

How am I wrong exactly? Wikipedia agrees with every word I've written.

PMSL

Stop it, it's hurting,

joguest wrote: »

supply is not the number of houses on the market

If the amount of houses on the market is not supply what is it?
Every house on the market is available for customers, so it is supply. You can't say it is not. Price is irrelevent as it is when supply and demand meet that set the price.

any chance on this, must be 5th time now??
So if you over supply prices fall, demand should then rise.
Under supply Price increase demand falls back.
Supply is stock regardless of price, price is where supply and demand meet.

So Last time, What will happen if supply keeps falling?????

Edit,

Seen your last response, how about the quote which went with it I put it in bold above for you.

Too desperate, enjoy your day Jo

I

Aberdeenangarse

Really2 wrote: »

What will happen if supply keeps falling?????

Dunno, but it looks like House prices are falling, does that answer your question?

Mallotum_X

Really2 wrote: »

wiki
Demand = In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay[1] (see also supply and demand). The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.

So a Sale is very much an indication of demand.

Supply = Supply (economics), the amount of a product which is available to customers

No text book required, by your own judgment of True (wikipedia)
You are wrong.

So if you over supply prices fall, demand should then rise.
Under supply Price increase demand falls back.
Supply is stock regardless of price, price is where supply and demand meet.

So Last time, What will happen if supply keeps falling?????

So a Sale is very much an indication of demand.
Not quite, a sale is a reflection of supply and demand, of the position of both the seller and purchaser. At a given sales price point demand may actually be much higher, yet supply is limited.

Supply and demand curves can exhibit various differing angles, curves etc. In theory you can have supply and demand 'curves' that are perfectly vertical or horizontal depending on other cicumstances.

So in answer to your question if supply keeps falling then, it depends. In very basic supply and demand graph examples a falling supply could lead to an increasing price. But if supply is falling and supply is still above demand, then nothing would happen, and other factors would impact on changing prices.

If supply falls yet at the same time the demand curve were to shift then it depends on how it shifts. Say mortgage funds dried up, for example, then if supply falls (and assuming it falls with out the curve shifting) then you would expect the demand to drop away due to the lack of ability to fund a house. So supply could fall and the result would be falling prices.

If we are at some sort of equilibrium point (unlikely except in theory) then if nothing else were to change one would expect prices to rise. But as we all know something else is bound to change, so it depends on the other factors and the impact on the demand curve.