> Supply and demand are worse. They [...] almost always break down in real world situations.
> For example: more supply can generate more demand. Demand can be inflexible with respect to supply. Supply and demand are unstable and can change unpredictably. In a monopoly situation price can be manipulated. Short term large supply can hamper long term.
Supply and demand do not "break down" in any of your examples. You literally wrote how supply and demand apply in each of your examples. It is simply wrong to say they "break down".
For example, consider "more supply can generate more demand". I agree. In many cases, when a city starts to densify, the simple fact that the city is denser can generate more demand by attracting more people that want to live in it due to job opportunities, culture, etc that develop due to the new density.
But that doesn't contradict supply and demand. And, for example, if the prices stay the same while both supply and demand increase, that still has a positive side. It means that the city is becoming attractive while still permitting more people to live in it for the same price.
> For example: more supply can generate more demand. Demand can be inflexible with respect to supply. Supply and demand are unstable and can change unpredictably. In a monopoly situation price can be manipulated. Short term large supply can hamper long term.
Supply and demand do not "break down" in any of your examples. You literally wrote how supply and demand apply in each of your examples. It is simply wrong to say they "break down".