Comments on: Can Housing Quotas Affect Demand For Housing? https://marketurbanism.com/2016/08/31/can-housing-quotas-affect-demand-for-housing/ Liberalizing cities | From the bottom up Fri, 14 Jan 2022 17:30:52 +0000 hourly 1 https://wordpress.org/?v=5.1.1 By: Justin C. https://marketurbanism.com/2016/08/31/can-housing-quotas-affect-demand-for-housing/#comment-21334 Wed, 31 Aug 2016 15:24:00 +0000 http://www.marketurbanism.com/?p=6990#comment-21334 In reality, demand curves are bumpy and jagged and may have upward spikes at some higher price level, before dropping off again at a price level that’s higher still.

We draw straight-sloping demand curves because it’s convenient and gets the basic idea across for the purposes of Econ 101.

But yes: Nothing in economics or finance–or anything else for that matter–moves in a perfectly straight line.

A conclusion that the curve may be “upward sloping” also ignored the reality that as neighborhood quality (and housing quality) changes, so has the product, and so different neighborhoods would have different demand curves.

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