February 26, 2009

Law of Demand At Work: Chinese Scoop Up SoCal Foreclosurers

This video is a great example of market correcting forces. A demand curve tells us when the price of a product decreases, the quantity demand increases. While housing prices, especially in California, have fallen dramatically, eventually the price decreases will attract buyers in the US... and in China

1 comment:

Anonymous said...

I think that it is a good investment for them to come here from their country to buy homes/land. Especially the fact that the land, and housing there is twice the price. If I were in a situation where I could move to a nice location that had a decent government system, and profit from it (not neccesarilly money profit, but profit in goods) I would sieze the opprotunity.