Which of the following best explains why the supply of housing in Detroit is much less elastic than in other cities? The automotive industry's dominance of the economy in Detroit discourages building homes in the city, even if prices rise O People find Detroit to be an undesirable place to live and wouldn't invest in houses in Detroit, even if pices rise O The high number of vacant houses in Detroit discourages builders from constructing new homes, even if prices rise O There is a fixed amount of land in Detroit, which limits the number of new houses that can be built if prices rise

Which of the following best explains why the supply of housing in Detroit is much less elastic than in other cities? The automotive industry's dominance of the economy in Detroit discourages building homes in the city, even if prices rise O People find Detroit to be an undesirable place to live and wouldn't invest in houses in Detroit, even if pices rise O The high number of vacant houses in Detroit discourages builders from constructing new homes, even if prices rise O There is a fixed amount of land in Detroit, which limits the number of new houses that can be built if prices rise

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 1P

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