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CHAPTER 2 BASIC REAL ESTATE ECONOMICS

- 30 - CHAPTER 2 BASIC real ESTATE ECONOMICS INTRODUCTION real ESTATE DEMAND real ESTATE DEMAND CONCEPTS DEMAND SENSITIVITY TO PRICE/RENT CHANGES: PRICE ELASTICITY OF DEMAND Impact of Actual Price Changes vs Expected Price Changes EXOGENOUS DETERMINANTS OF real ESTATE DEMAND MEASURING CHANGES IN real ESTATE DEMAND: ABSORPTION CONCEPTS THE SUPPLY OF real ESTATE real ESTATE SUPPLY CONCEPTS The Long-Run Aggregate Supply: Is it Relevant? The Short-Run Aggregate Supply New Construction NEW CONSTRUCTION BEHAVIOR What Determines New Construction?

Urban real estate markets may be peculiar and idiosyncratic in a number of respects, but they still obey some basic economic principles: the principles of demand and supply. In what ... movements into the future (Sivitanidou and Sivitanides, 1999). If that is the case, what will

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