For cities like NYC and SF I think it’s clear there is a ton of induced demand.
If housing prices were cut in half in SF you’d see WAY more people moving here.
If housing prices were cut in half in SF you’d see WAY more people moving here.
Induced demand is "adding supply increased the price"
Build more freeways and you get more drivers.
> Build more freeways and you get more drivers.
That's like having a McDonalds without enough cashiers and then saying "hire more cashiers and you sell more hamburgers" is induced demand because the hamburgers cost the same but you sell more of them.
That's not induced demand, you're just changing the price. Having to wait in line (or sit in traffic) is a cost. If you reduce the cost, demand goes up, but that's just ordinary supply and demand again.