experience of the housing market proves that market works. ECONOMICS

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experience of the housing market proves that market works.  

A Free Market is determined  by the  law with no government interference in the control of costs, supply and demand. the buying and selling of goods and services are arranged wholly by the joint non-coerced consent of sellers and buyers.  supply and demand is the backbone of a market economy. Demand refers to how much (quantity) of a product or service is desired by buyers while supply represents how much the market can offer.

In economics, supply and demand illustrate market interaction between prospective sellers and buyers of a goods and services . The supply and demand  determines price and quantity sold in the market.   of price and quantity occurs when price function to equalise the quantity of goods and services demanded by consumers and the quantity supplied by producers in a competitive market. This price is called the  and will tend not to change except demand or supply change. Law of demand and supply states that . , other things being equal, the demand for a commodity or service will decline if the price is raised and will rise if the price is reduced(IPA, 2004, economics stage 2, p.17...)

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Furthermore, from the description of Market above, the experience of the Irish Housing market over the past ten years or so indicates that Markets works. supply and demand move prices, for the past years, an increase in demand for housing forced the housing price to increase and contactors tend to build more houses to meet the consumer‘s need, then it got to a state of equilibrium where the demand for housing is equal to the supply and now, the demand for housing tend to be reducing which will cause a decline in the housing price.

Excess demand puts ...

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