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Explain several phenomena with market equilibrium theory and elasticity theory
Take the current domestic housing market as an example: at present, housing prices are affected by supply and demand. As a land supplier, ZF monopolizes land supply and strictly controls land delivery, which determines the scarcity of commercial housing. In addition, because the land market is monopolized by the seller, the land price, that is, part of the cost of the house price, is directly priced by the seller (not by the market). On the demand side, real estate speculators contributed a large part of the demand. Many houses are hoarded in the hands of speculators, losing their housing attributes and only having commodity attributes, thus further reducing the actual effective supply in the market. Under such supply and demand conditions, house prices will stabilize at a higher equilibrium price. In addition, the rigid demand often mentioned by some stakeholders refers to such a demand with less flexibility. In fact, it is mainly the demand for wedding rooms. Under the current social customs, this so-called mother-in-law demand cannot be effectively improved. Labor market: the wages of ordinary workers and college students are low, because the supply seriously exceeds the demand, so the wage income is at a very low equilibrium price. Skilled workers and some experienced white-collar workers have higher wages, because the supply is very limited, but the demand is almost unlimited, because such skilled or experienced people have the lowest marginal wages, but they create the highest marginal benefits. In addition, some jobs have little demand elasticity. The above is an analysis of the reasons for wage pricing from the perspective of positive economics, but even if there are relative differences, the absolute wage level in society is still very low, which is the so-called market failure. From the perspective of normative economics, the government or trade unions must intervene through administrative means. The price change and income of agricultural products are complex and cannot be explained only by equilibrium theory and demand elasticity. This also involves game theory, but even so, it is impossible to make a good prediction, because the supply of agricultural products is a chaotic system. Unlike workers, farmers are very stable and will do one thing for several years, 10 year. Farmers will forecast this year's market by themselves and refer to last year's market. If there was a bumper harvest of apples last year and the price was low, everyone may not plant apples this year, but it is also possible that everyone thinks that others will definitely not plant apples this year, and I will continue to plant apples. Therefore, there is no way to predict this game strategy and everyone's psychological factors. In principle, only a general explanation can be given. The above are some of my understandings, I hope to help you.