Assume That the Long-Run Supply of Housing Is Highly Elastic

question 2

Multiple Choice

Assume that the long-run supply of housing is highly elastic.The imposition of binding rent controls will lead to

• A)a reduction in the housing shortage over time.
• B)a worsening of the housing shortage over time.
• C)no significant change in the housing shortage over time.
• D)only a temporary housing shortage.
• E)the price of rental housing to revert back to its free-market equilibrium level.

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Definitions:

Scatterplot

A type of graph used in statistics to display values for two variables for a set of data, showing the relationship between them.

Points

In various contexts, a numerical value representing a quantity, score, or position.

Influential Points

In statistical analysis, data points that have a significant impact on the outcome of a linear regression or other model.

Labeled Points

In data science, points that are tagged with a label or value, often used in supervised learning.