Supply and Demand

Supply and Demand XECO 212 April 10, 2011 Supply and Demand In economics confer and contend refers to the relationship between the accessibility of a good or service and the need or wish for it amid buyers (Microsoft, 2009). Our daily lives be affected by supply and bespeak. Demand is based on the charge of a product, the price of related products, and customers salary and preference. Supply plenty rest non exactly on the price available for the product but in addition on the cost of similar products, the method of how it is made, and the availability and price of contributions. In this specific case I will explain how supply and demand has affected my decision to purchase a home (The Free Dictionary, n.d.). Factors that Could Cause Changes in Supply and Demand I am the Compliance and Closing Manager for a vicarious market owe company. Over the past thirteen long time I have worked in every area of mortgage lending, through the good and bad times. I have seen the do that cause the changes in supply and demand when purchasing a home. One factor that drop affect supply and demand when purchasing a home are is interest rates. broad(prenominal) interest rates can lead to less commonwealth making the decision to purchase a home because of high mortgage payments.

The effect of higher interest rates can cause the supply to increase as homes sit on the market longer. When a home sits on the market for a prolonged period of time, the price can be affected. If the supply is high and the demand is low, for one home to be exchange over another, price is also a factor that can increase demand. Homes with lower sales prices affect affordability. The lower priced a home is, the more reasonable it is to a would-be buyer. another(prenominal) factor that can affect supply and demand is reason of the home. A home in poor condition is not usually in high demand, but for an investor looking to rehab a home condition may not be a factor. Substitutes for Buying a Home There are several options or... If you pauperization to get a full essay, order it on our website: Ordercustompaper.com

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