These models and simulations have been tagged “elasticity”.
Marketplace Modeling diagram
This model is to explain the relationships among different players in a real estate marketplace,
including the simple economic concept, for example, demand, supply, price, etc.
The model is basically two years monthly based. It starts with a relationship
between demand, supply and price. These three main determines are
interdependent and affect other others. Moreover, there are few variables in
the model, the price elasticity of demand and supply are included in order to
successfully predict the flow of price since all determines are dynamic numbers
but not a fixed number. Simultaneously, buying and selling ratio are in the
model to demonstrate the proportion of residents and owners to buy and sell. When
people are highly interested to buy a new home, their motivation are based on
the demand and supply in the market. If demand goes up, supply goes down, price
will go up. If the price goes down, demand will soon goes up because the price
is low so people can become home buyers.