As an item of living necessity, the residential house falls into the category of inflexible commodity within certain range of price. When the suppliers of residential houses realize this, they tend to reduce the amount of supplies through coordination and thus raise the price with the purpose of gaining more profits. Then the curve that indicates the supply will become negatively skewed. Under such circumstances, because of the unbalanced demand and supply, the price of the houses may rise continuously. To check this trend, the government should make policies to interfere with the price in light of a balanced demand and supply of residential houses.
|Original language||Chinese (Simplified)|
|Number of pages||5|
|Publication status||Published - 2007|
- the housing price
- living necessity
- market mechanism