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?

• A. Demand may become more elastic as consumers find alternative living arrangements.
• B. Demand will become perfectly elastic as everyone will move to cheaper areas.
• C. Demand will remain inelastic because housing is a necessity.
• D. Demand will increase as people invest more in housing.

Answer: (A)