Economics: Relationship Between Supply And Demand

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The law of supply and demand is a basic economic principle that explains the relationship between supply and demand for a good or service and how the interaction affects the price of that good or service. The relationship of supply and demand affects the housing market and the price of the house. The definition of the Demand as a consumer 's desire to buy a product and to enhance the purchasing power of enterprises in order to obtain a certain amount of goods when they reach a certain price over a given period of time. There is an inverse relationship between price and cost. The price increase demand will decrease. But if the price decrease will increase demand. The definition of supply the amount of goods or services that you offer Producers…show more content…
Example Population When the population increases the demand for housing increases. Demand for housing increases in cities because the number of the population is large. But the demand for housing decrease in small villages because the population is small. The reason for the increase in housing in the city is that a large number of residents move to work in the city such as college students and universities. Another factor is the per capita income. Such as if high income is increasing demand for housing, but if the income is low there is little demand for housing. The location of the housing affects the demand such as if the housing is nearby to the markets or government institutions the demand will increases. The growth economy of the country effects of the demand, such as if the economy increases, the price of housing will decrease and demand will increase. But when economic growth is low, the price of housing will increase and demand will decrease. Another factor is the diversity of population composition such as single and married. Increasing the number of married increases the demand for housing. Another factor is future price expectations will increase or decrease. Also the supply effect the housing the long lead times in the construction of housing. When housing delays us the people will live in another housing. Minimize the price of housing to bring people. When you have more than one place to live, people will choose the lowest price.…show more content…
I expect the future will increase in the number of housing in Oman. Because there are many reasons for the increasing numbers of people in cities and villages. An increase in population requires many residential buildings. Increase the percentage of young people in society. With the development and progress in the economy, I expect higher housing prices in the future. Laws issued by the government on housing are excellent. An example of demolition of buildings that pose a danger to people living in them. Some laws passed by the government such as increased control or high rent, This reduces fraud in rent housing. The housing owner must execution all conditions. And choose the appropriate location for the construction of housing and the building is beautiful. In order to attract a large number of people to live in housing. Achieving all conditions and laws leads to political stability. And also the rise of the economy of the state, present and future. These changes occur in supply and demand every day. In fact, economists follow the patterns of buying and selling for each of us, through which they build their expectations about the future of the

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