Suppose That a Group of Humans Build an Enormous Space

question 147

Multiple Choice

Suppose that a group of humans build an enormous space ship of fixed size and travel into outer space, never to return. They live on board the ship and allocate all goods on the ship using markets. As the population grows, the price of housing on board the ship will

• A) remain constant.
• B) fall rapidly.
• C) grow more slowly than the quantity of housing supplied.
• D) grow faster than the quantity of housing supplied.