Assuming That the Long-Run Supply of Housing Is More ________

question 106

Multiple Choice

Assuming that the long-run supply of housing is more ________ than the short-run supply,the imposition of binding rent controls will generally ________.

• A)inelastic; lead to a reduction in the housing shortage over time
• B)elastic; lead to a worsening of the housing shortage over time
• C)inelastic; lead to no significant change in the housing shortage
• D)elastic; lead to only a temporary housing shortage
• E)elastic; lead the price of rental housing to revert back to its equilibrium level

---

Definitions:

Coordination Problems

Challenges that arise in aligning the plans and actions of multiple parties in order to achieve a common goal or optimize outcomes.

Economic Profit

is the excess of total revenue over the total costs, including both explicit and implicit costs.

Accounting Profit

Accounting profit is the net income a company reports on its financial statements, calculated as total revenues minus explicit costs and depreciation.

Marginal Product

The extra production obtained by employing an additional unit of a variable resource, while keeping the rest of the inputs unchanged.