the long-run supply of housing scenario 1, Microeconomics

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the long-run supply of housing scenario 1

The Long-Run Supply of Housing

* Scenario 1: Owner-occupied housing

- Suburban or rural areas

- National market for inputs

* Questions

- Is this an increasing or constant cost industry?

- What would you foresee the elasticity of supply?

* Scenario 2: Rental property

- Urban location

- High rise construction cost

* Questions

- Is this an increasing or constant cost industry?

- What would you foresee about the elasticity of supply?

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Microeconomics: the long-run supply of housing scenario 1

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Microeconomics: the long-run supply of housing scenario 1

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