In the Housing Market, Supply and Demand Are

question 227

Multiple Choice

In the housing market, supply and demand are

• A)more elastic in the short run than in the long run, and so rent control leads to a larger shortage of apartments in the short run than in the long run.
• B)more elastic in the short run than in the long run, and so rent control leads to a larger shortage of apartments in the long run than in the short run.
• C)more elastic in the long run than in the short run, and so rent control leads to a larger shortage of apartments in the short run than in the long run.
• D)more elastic in the long run than in the short run, and so rent control leads to a larger shortage of apartments in the long run than in the short run.

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Definitions:

Supply Uncertainty

The unpredictability associated with the availability of products or materials necessary for production.

Product Availability

The extent to which a good or service is available for purchase at any given time.

Product Differentiation

Strategies businesses use to make their products stand out from competitors' by highlighting unique features or benefits.

Customization

The process of modifying or building a product, service, or system to accommodate specific requirements of an individual customer or a particular market segment.