More volume means input costs drop. Productivity of inputs have increased, the supply curve shifts to the right. Economies of scale, etc.-Why should input costs fall?
In that specific case of input prices dropping? If the there is not enough demand at say €20,000 a year per person, but there is at €15,000 and at €15,000 the entrepreneur makes a loss, then the input prices have to reduce to below €15,000 to meet demand. That involves all the materials, labour and overheads to come down to meet that objective price level. The suppliers of the project will have to revise their quotes (including the skilled workers) to win the contract.Why would blocks, land, planning, etc prices fall for the Nursing home project?
No, they shouldn't, markets are dynamic and in my opinion Say's Law is correct, supply creates its own demand.Do they fall across the construction sector in sync?
Its just the dynamics of the laws of supply and demand. They are like gravity and have been part of the human condition since man first acknowledged the concept of scarcity.Why and how?