Micro-Economics Essay Example | Topics and Well Written Essays - 250 words

Micro-Economics - Essay Example He also traces the  confusion  to the non-availability of  attractive  homes at  many  parts of the country, a  case  that is making the  available  buyers  lack  the houses they could want for  purchase. This view  was  however challenged,  by chief Economist Paul Dales, arguing that, since 30 years  back, there has been an excess supply of one million homes, available to be traded. He  further  cites the poor economic situation, as the cause for the decreased level of home purchases in the past. The author cites another problem, which could be hampering the supply-demand stability of the home market, as the acutely decreasing  home  prices. From the different accounts, the debate ends with no clear definition of the problem facing the homes’ market in the U.S (Timiraos  1). However, the author integrates the different versions of the explanations, into the  causes for the confusion facing the US homes’  market. These include  the availability of many homes at the  wrong  places, where customers are not willing to buy, which is  the result of the housing boom; the overpricing of the many homes available for sale – an effect of the d eclining inventory; and the short sale cases, which make up the bigger part of the market. The economic concepts illustrated through the information include the concept of demand, where the shifts in  the demand  curve  are depicted  through the changing preferences of buyers, where the  case  is that, despite the availability of about a million homes for sale, the buyers cannot find the homes they want to  purchase. In the area of  buyer  expectations, the buyers are not willing to  buy  the homes, which  are located  at the far-flung locales. The concept of demand  is clearly depicted  through the case of the  inflated  home prices, of the homes that are available for sale, as a result of the declining inventory. This case is  thus, leading to decreasing demand, in response to the increased prices. The