Lecture
This lecture explores the effects of equilibrium price changes in real estate economics. It covers scenarios such as price decreases leading to increased surplus for buyers, price increases resulting in surplus losses for buyers, and price hikes benefiting new and existing sellers. The impact of demand and supply fluctuations on buyer and seller surpluses is also discussed, along with a recapitulation of the various equilibrium perturbations. The instructor emphasizes the interdependence of market sides and the importance of understanding how changes on one side affect the other, illustrating with examples the implications of demand and supply shifts on market outcomes.