Recall the Application About Restrictions on Residential Housing Developments in Britain

question 19

Multiple Choice

Recall the Application about restrictions on residential housing developments in Britain to answer the following question(s) .
-According to the Application, an increase in the demand for housing in a housing market that has a lot of restrictions will result in a _______ increase in the prices because the supply curve is _______.

• A)larger; steeper
• B)smaller; flatter
• C)larger; flatter
• D)smaller; steeper

---

Definitions:

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.

Circular-flow Diagram

A visual construct of the financial ecosystem, detailing the exchange of dollars between households and firms via markets.