Long-run supply of housing , Microeconomics

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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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