If the Supply Curve for Housing Is Perfectly Inelastic, How

question 52

Multiple Choice

If the supply curve for housing is perfectly inelastic, how will a reduction in demand affect the equilibrium price and quantity?

• A) The price will rise and the quantity will fall.
• B) The price will fall and the quantity will fall.
• C) The price will fall and the quantity will stay the same.
• D) The price will rise and the quantity will stay the same.

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Definitions:

Poor

Refers to individuals or communities lacking financial resources and essentials for a minimum standard of living.

Richer

Having a greater amount of wealth, resources, or assets compared to a previous state or compared to other individuals or entities.

Relative and Absolute Terms

Concepts used to compare differences in terms of relationships or ratios (relative) and fixed values or units (absolute).

Social Security

A government system that provides monetary assistance to people with an inadequate or no income, particularly the elderly, disabled, and families with dependent children.