explain how supply and demand effect the prices of homes and be sure to shpw your work

A place to live is a necessity, every human needs one. When there are less homes than human families that need them, homes are scarce, and folks will bid up the available houses. Contra, when there are more homes available than folks who need one, the prices go down. Often, this is the effect of migration (jobs, etc).

How can two people specilzie in producing products when it seem one person is self sufficent. Say that each person has the same jobs.answering phones & producing statements. one person can answer 8 phone calls in an hour or produce 1 statement in a hour. The other person can answer 10 calls in a hour while producing 2 statements. does each person have a absolute advantage in producing both products? or should they specalize?

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Supply and demand is the fundamental concept that influences the prices of homes in a market. Let's break it down and demonstrate how this works step by step.

1. Supply: The supply of homes refers to the number of homes available for sale in a given market. It is determined by various factors such as new construction, housing inventory, and the number of homeowners willing to put their houses up for sale.

2. Demand: The demand for homes represents the desire and ability of potential buyers to purchase properties. Demand is influenced by factors such as population growth, economic conditions, interest rates, and affordability.

3. Equilibrium: The interaction of supply and demand determines the equilibrium price, where the quantity of homes supplied matches the quantity of homes demanded. At this point, there is a balance between the number of homes available and the number of buyers willing and able to purchase them.

Now, let's look at how changes in supply and demand impact home prices:

1. Increase in Demand: When demand for homes rises, but the supply remains constant, there is now an imbalance in the market. Buyers are competing for a limited number of homes, leading to increased competition and bidding wars. As a result, sellers can raise their asking prices, leading to an increase in home prices.

2. Decrease in Demand: Conversely, when demand for homes decreases, but the supply remains constant, there is an oversupply of homes in the market. Sellers, therefore, need to lower their prices to attract buyers, resulting in a decrease in home prices.

3. Increase in Supply: If there is an increase in the supply of homes, all else being equal, this can lead to downward pressure on prices. When there are more homes available than there are buyers, sellers may need to reduce prices to attract potential buyers, resulting in lower home prices.

4. Decrease in Supply: Conversely, if the supply of homes decreases, it can create a shortage in the market. With fewer available homes, sellers can increase their asking prices, as buyers may be willing to pay a premium due to limited options, leading to an increase in home prices.

In summary, changes in supply and demand directly affect home prices. When demand outpaces supply, prices tend to increase, while when supply exceeds demand, prices generally decrease. It's important to note that supply and demand dynamics can vary across different regions and markets, leading to variations in home prices.