consider-a-scenario-where-the-price-of-housing-increases-by-20-over-a-decade-how

Question

Consider a scenario where the price of housing increases by 20% over a decade. How might this affect the demand for housing in the long run?

Accepted Answer

Demand may become more elastic as consumers find alternative living arrangements.

Answer

Demand will become perfectly elastic as everyone will move to cheaper areas.

Answer

Demand will remain inelastic because housing is a necessity.

Answer

Demand will increase as people invest more in housing.