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:

Productive Ways

Efficient and effective methods or approaches to achieve desired outcomes, maximizing output while minimizing wasted resources.

Self-punishment

A form of self-discipline where an individual imposes a penalty on themselves for a perceived or actual mistake or wrongdoing.

Self-goal Setting

The process of an individual setting personal objectives and milestones to achieve a desired outcome.

Behavior Strategy

An approach or plan designed to influence or modify human actions or reactions in specific contexts to achieve desired outcomes.