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This Is How Economists' Typically Analyse Markets (landsburg, 2002; Ch.1). ...

This is how economists' typically analyse markets (Landsburg, 2002; ch.1).
How does the price of housing adjust to ensure that equilibrium is reached? If demand exceeds supply, then there is more demand for housing at the existing price than producers are willing to supply at that price. In such circumstances, economists say that purchasers of houses are rationed not everyone who wants to buy a house at the existing price can get one. These potential purchasers start competing with one another by offering suppliers a slightly higher price for a house than was the case in the market initially. This has two effects; first of all, the higher price induces more supply, and secondly, the higher price lowers demand. This means that the excess demand in the market that existed initially falls as a consequence of competition between rationed purchasers. Naturally, this process of competition will continue until prices have been bid upward sufficiently to ensure that demand and supply are equal. At this point, no-one is rationed and excess demand falls to zero.
Of course, this process can be reversed. Imagine that at the existing price the supply of houses exceeds the demand. Now it is the producers of houses who are rationed not everyone who wants to sell a house at the existing price can. As before, these potential sellers start competing with one another by offering purchasers a slightly lower price for a house than was the case in the market initially. This has two effects; first of all, the lower price induces less supply, and secondly, the lower price raises demand. This means that the excess supply in the market that existed initially falls as a consequence of competition between rationed sellers. Just like the previous case, this process of competition will continue until prices have been bid downward sufficiently to ensure that demand and supply are equal. At this point, no-one is rationed and excess demand falls to zero (Landsburg, 2002; ch.7).
What are we to make of this analysis from economics? Economics helps us to understand how prices are determined. They are determined by the forces of supply and demand operating through the mechanism described above. But can this give us some insight into the concept of affordability? Not really. The notion of affordability is one that does not make sense within the discipline of economics. This might be a weakness of economics, but it might also be that the concept itself is meaningless.
Let me explain. In economics, the equilibrium price of housing (also known as the market price) is the price that is desirable from a social point of view. It can neither be too high or too low. Provided that the housing market is a so-called competitive market then the equilibrium price is the one that society ought to want (Landsburg, 2002; ch.8). How does economics reach this surprising conclusion?