Explain why the supply of housing is inelastic in the short-term. (150 words)

Explain why the supply of housing is inelastic in the short-term. (150 words)

Expert Solution

Supply of housing is inelastic in the short-run because of many factors . Firstly due to unavailability of suitable land in ceratin places , building space is difficult to find in short run . Secondly , sometimes planning permission is required to build new houses which may take some time to be passed . Thirdly , building a house is a big project and takes time to build so in very short run new houses cannot grow overnight , making supply inelastic . Fourthly , houses is considered capital investment and hence large sum of money is required to build a house , so supply is inelastic as such huge sum of money takes time to be gathered and spent .

Hence all these factors make supply of housing inelastic in short run .

Rahul Sunny answered 2 years ago

1. Explain 2 reasons why the supply of physician services is highly inelastic in the short...

1. Explain 2 reasons why the supply of physician services is highly inelastic in the short run. 2. Explain why the supply of physician services becomes more elastic over the longer term. 3. Explain how physician-induced demand undermines efficiency in the health care industry. 4. Explain how insurance affects the extent of physician-induced demand.

explain the housing market supply and demand in your own words. Hint: housing crisis in California.

Why is the short run supply curve relatively more inelastic than the long run supply curve?

In a short essay (100-150 words), explain why intersexual selection often leads to sexual dimorphism.

. In your own words , explain the predominant aging mechanisms in the short-term and the...

. In your own words , explain the predominant aging mechanisms in the short-term and the long-term aging in bituminous materials.?

Explain why benzodiazepines are anxiolytic in the short term but anxiogenic in the long term whereas...

Explain why benzodiazepines are anxiolytic in the short term but anxiogenic in the long term whereas serotonin specific reuptake inhibitors (SSRIs) are the reverse

Explain, in your own words (150~300 words), why the common conception of a “gene for trait...

Explain, in your own words (150~300 words), why the common conception of a “gene for trait X” may be misleading. [Hint: Think about what the connection between a genotype and a phenotype is, and what additional factor(s) may come into play]

Elastic and inelastic supply

The following graph shows the supply of a good For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Elastic Inelastic Region Between Y and Z Between W and X True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes more elastic because firms may need to...

1.use graphs and words to explain the market day supply, short run supply and long run...

1.use graphs and words to explain the market day supply, short run supply and long run supply 2.which of the following best explains why the price of many goods are decreasing in the current economic slump, yet sales are decreasing too? a. demand curves have a positive slope during recessions. b. innovations have caused price and sales to decline. c. incomes have fallen. d. population has grown. e. people expect prices to begin rising soon.

a) Explain how to derive the short-term supply curve in a market there perfectly competition prevails!...

a) Explain how to derive the short-term supply curve in a market there perfectly competition prevails! b) How can an increased salary of those who work with production be shown with the help of cost and supply curves? c) Explain the claim that a fully competitive market (where no external effects occurs) both maximizes the efficiency of production and maximizes it socio-economic welfare! d) Discuss how Systembolaget's monopoly(systemsbolag is a monopoly compnay for selling alcohol) affects the socio-economic efficiency!

Question