News for hackers. Stuff that matters.

A comment on We may have reached peak “gig” economy. Parent comment

Re:We may have reached peak “gig” economy by jstanley on Tuesday February 07, 2017 @01:50AM (#13587628)
That's not how market forces work. If you increase the supply, the price goes down, not up.
[ Parent | on HN ]
Re:We may have reached peak “gig” economy by conjectures on Tuesday February 07, 2017 @07:17AM (#13588837)
You're probably overlooking the change in the quality of the good. Demand in London is highly elastic. If a lot of new sleeping units come on to the market, they will be filled easily because lots of people want to live there.

Now suppose we divide old units of accommodation priced £ in two (halve the slope of the supply curve). The price of a new unit will be close to £. But an old unit then costs nearly 2£. So you have a choice between slum housing and coughing up double the rent.

[ Parent | on HN ]