The Supply Curve for Housing in the Very Short Run

question 27

Multiple Choice

The supply curve for housing in the very short run is likely to be

• A) very elastic.
• B) very inelastic.
• C) unit-elastic elastic.
• D) perfectly elastic.

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Definitions:

Discounted Payback

An investment appraisal method that calculates the time required to break even in present value terms, factoring in the time value of money.

Operating Cash Flow

The cash generated from the normal operating activities of a business in a specific time period.

Net Working Capital

The difference between a company's current assets and current liabilities, used to measure its short-term financial health.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability from its operations, excluding the effects of interest and tax expenses.