Market Equilibrium: Buyers and Sellers

This lecture explores the concept of market equilibrium in the context of land and real estate economics, focusing on the selection of buyers and sellers based on their willingness to pay or receive. It covers topics such as buyer frustration, maximization of willingness to pay, minimization of willingness to receive, and the properties of market equilibrium. The lecture also delves into the nature of market equilibrium, competitive balance, and secondary markets, illustrating how prices adjust to balance supply and demand. Additionally, it discusses scenarios where buyers and sellers with different valuations interact in the secondary market, highlighting the importance of pricing strategies. The lecture concludes with a discussion on interpreting the difference between willingness to pay or receive and the market price.