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A comment on Stanford paper says rent control is driving up cost of housing in San Francisco. Parent comment

Re:Stanford paper says rent control is driving up cost of ho... by taneq on Tuesday January 09, 2018 @03:19AM (#16104451)
Just to check that I'm understanding you correctly, you're saying that the cost of producing a product is a function of its sell price?
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Re:Stanford paper says rent control is driving up cost of ho... by mdpopescu on Wednesday January 10, 2018 @01:33PM (#16117550)
Yes. Costs are determined by the sale price, not the other way around. For example, if the sale price of a product increases, the demand for its components raises, which raises their cost.

If a would-be producer cannot source materials that would cost him less than the sale price, he just won't build the product.

[1] has more details on the subject.

[1] https://mises.org/library/whats-cost-got-do-it-0

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