Following Example 8.8 in the book, the long-run supply of rental housing in most U.S. communities is more inelastic than the long-run supply of owner-occupied housing. Why?
A) Local rental housing regulations
B) Limited demand for rental housing
C) Limitations on the urban land available for rental housing
D) A and C above are correct
D
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According to the Economics in Action story “A Crushing Reversal” in the slides of chapter 7, what happened to the market for wine in the US between the mid-1990s and 2002? In the mid-1990s, demand for wine in the US increased, which first resulted in higher wine prices and profits until…
A) some producers exited the market so that lower supply pushed prices up even further. B) some producers exited the market so that lower supply pushed prices down again. C) new producers entered the market so that higher supply pushed prices up even further. D) new producers entered the market so that higher supply pushed prices down again.
Which of the following often involves positive external benefits?
A) water pollution B) drunken driving C) inoculation programs D) tobacco smoking