High+Demand,+Low+Supply+Makes+Apartments+Attractive+to+Investor+by+Ric

//**REMEMBER: DO NOT SUMMARIZE THE ARTICLE!!!**//

=TITLE OF EXTRACT:= High demand, low supply make apartments attractive to investors  [] =SOURCE:= VCSTAR

=DATE EXTRACT WAS WRITTEN:= March 24, 2012

=DATE CURRENT EVENT WAS WRITTEN:= March 26, 2012

=EXPLANATION OF THE ECONOMIC THEORY RELATED TO THE ARTICLE:= High demand means there is a significant high quantity of the demanded good/service. Low supply means there is a significant low supply of the good/service. With a high demand for a the good/service means the price will be high. Investors are attracted to these high prices because if they can purchase all of the supply of the good/service, they can sell them at a higher price. This article is talking about apartments; meaning if investors purchases these limited supply of apartments, they have the ability to increase the price and sell it to other buyers since apartments are now at a high demand. The investors are the price givers and the buyers are the price takers.

=VOCABULARY TERMS AND DEFINITIONS:=
 * **Demand:** The willingness and ability of a consumer to purchase a quantity of a good or service at a certain price (in a given time period).
 * **Supply:** The willingness and ability of a producer to produce a quantity of a good or service at a certain price (in a given time period).
 * **Law of demand:** As the price of a good falls, the quantity demanded will normally increase. (The demand curve usually slopes downwards, ceteris paribus).
 * **Law of supply:** As the price of a good rises, the quantity supplied will normally rise. (The supply curve usually slopes upwards, ceteris paribus).

=DIAGRAMS:=

=EVALUATION:= To decrease the price of the apartments, suppliers will have to increase production; build more apartments so that buyers will not have to purchase from investors at higher prices.