Answered

Which of the following best explains why the supply of housing doesn't
automatically increase to meet rising demand?
A. The ever-increasing size of the population is always increasing
demand faster than supply can grow.
OB. There are so many different kinds of housing that it's difficult to
predict what kind of housing consumers are demanding.
C. The supply of housing can't change very quickly because building
houses is expensive and takes a lot of time.
D. There's never enough capital investment to meet the high cost of
building new houses.



Answer :

GinnyAnswer

Final answer:

The supply of housing does not immediately meet increased demand due to cost, time constraints in construction, housing market dynamics, and the interplay of various factors affecting demand and supply.


Explanation:

The supply of housing doesn't automatically increase to meet rising demand primarily because:

  1. Cost and time: Building houses is expensive and time-consuming, making it difficult for supply to adjust quickly to demand changes.
  2. Housing market dynamics: Most housing is bought, leased, and resold multiple times, with only a small portion being new construction each year, impacting supply levels.
  3. Impact of factors on demand and supply: While factors like population growth influence demand, supply is affected by price, input costs, technology, and equilibrium in the housing market.

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