Elasticity of Supply: Why Housing is Unaffordable Practice Questions | Marginal Revolution University

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Practice Questions

Elasticity of Supply: Why Housing is Unaffordable Practice Questions

What key economic concept discussed in the video explains high housing prices? *

a. Sunk cost fallacy

b. Elasticity of supply

c. Recessions

d. Price ceiling

When the demand for housing increases, what happens to the demand curve? *

a. It shifts to the left

b. It remains constant

c. It shifts to the right

d. It becomes more inelastic

When demand for a good increases and supply is inelastic, both the equilibrium price and quantity will increase, but which increase will be larger (in percent terms)? *

a. Price

b. Quantity

c. They will increase by the same amount

d. Impossible to tell

In the context of housing, what does an inelastic supply curve indicate? *

a. Housing can be easily produced in response to demand.

b. Housing is difficult to produce even when prices are high.

c. There is an oversupply of housing.

d. The housing market is easy to enter as a developer.

How long does it take on average to receive a building permit for a new house in San Francisco, as mentioned in the video? *

a. 0-100 days

b. 100-200 days

c. 200-500 days

d. more than 500 days

Which of the following factors make housing supply inelastic? *

a. Zoning

b. Long delays to receive a housing permit

c. Environmental review

d. Protests from existing residents

e. Height restrictions

f. All of the above

With inelastic housing supply and increasing demand, what is the underlying mechanism through which prices increase? *

a. Buyers compete for housing by bidding up prices

b. Developers raise prices

c. Cities mandate high prices

Which city was mentioned as having made successful zoning reforms leading to a more elastic housing supply and therefore a higher quantity supplied? *

a. Los Angeles, USA

b. Auckland, New Zealand

c. Boston, USA

d. Silicon Valley, USA

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Principles of Economics Microeconomics

Course (103 videos)

Introduction

Introduction to Microeconomics

Practice Questions

Opportunity Cost and Tradeoffs

Practice Questions

Marginal Thinking and the Sunk Cost Fallacy

Practice Questions

Interactive Practice

Supply, Demand, and Equilibrium

The Demand Curve

Practice Questions

The Supply Curve

Practice Questions

The Equilibrium Price and Quantity

Practice Questions

Understanding the Demand Curve: Shifts and Consumer Surplus

Practice Questions

Interactive Practice

What Shifts the Demand Curve?

Practice Questions

Change in Demand vs. Change in Quantity Demanded

Interactive Practice

Understanding the Supply Curve: Shifts and Producer Surplus

Interactive Practice

What Shifts the Supply Curve?

Interactive Practice

Exploring Equilibrium

Interactive Practice

Interactive Practice

Supply and Demand Terminology

Practice Questions

Does the Equilibrium Model Work?

Practice Questions

Elasticity and Its Applications

Elasticity of Demand

Practice Questions

Calculating the Elasticity of Demand

Practice Questions

Office Hours: Elasticity of Demand

Practice Questions

Elasticity of Supply

Practice Questions

Elasticity of Supply: Why Housing is Unaffordable

Practice Questions

Elasticity of Supply: Do Gun Buybacks Work?

Practice Questions

Taxes and Subsidies

Commodity Taxes

Practice Questions

Who Pays the Tax?

Practice Questions

Tax Revenue and Deadweight Loss

Practice Questions

Practice Questions

Practice Questions

The Price System

A Price Is a Signal Wrapped up in an Incentive

Practice Questions

Markets Link the World

Practice Questions

The Great Economic Problem

Practice Questions

Information and Incentives

Practice Questions

Practice Questions

Prediction Markets

Practice Questions

Price Ceilings and Price Floors

Practice Questions

Price Ceilings: Shortages and Quality Reduction

Practice Questions

Price Ceilings: Lines and Search Costs

Practice Questions

Price Ceilings: Deadweight Loss

Practice Questions

Price Ceilings: Misallocation of Resources

Interactive Practice

Price Ceilings: Rent Controls

Practice Questions

Rent Control in Mumbai

Practice Questions

Price Floors: The Minimum Wage

Practice Questions

Price Floors: Airline Fares

Interactive Practice

Why Do Governments Enact Price Controls?

Practice Questions

Price Controls and Communism

Practice Questions

Trade

The Big Ideas of Trade

Practice Questions

Comparative Advantage

Practice Questions

Another Look at Comparative Advantage

Practice Questions

Comparative Advantage Homework

Practice Questions

Tariffs and Protectionism

Interactive Practice

Arguments Against International Trade

Practice Questions

Avengers: The Story of Globalization (Optional)

Practice Questions

Externalities

An Introduction to Externalities

Practice Questions

External Benefits

Practice Questions

Command and Control Solutions

Practice Questions

The Coase Theorem

Practice Questions

Trading Pollution

Practice Questions

A Deeper Look at Tradable Allowances

Practice Questions

Externalities and Incentives: The Economics of COVID

Practice Questions

Costs and Profit Maximization Under Competition

Introduction to the Competitive Firm

Practice Questions

Maximizing Profit Under Competition

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Maximizing Profit and the Average Cost Curve

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Entry, Exit, and Supply Curves: Increasing Costs

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Entry, Exit, and Supply Curves: Constant Costs

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Entry, Exit, and Supply Curves: Decreasing Costs

Practice Questions

Competition and the Invisible Hand

Minimization of Total Industry Costs of Production

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The Balance of Industries and Creative Destruction

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Monopoly

Maximizing Profit Under Monopoly

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Office Hours: Calculating Monopoly Profit

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The Monopoly Markup

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The Costs and Benefits of Monopoly

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Price Discrimination

Introduction to Price Discrimination

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The Social Welfare of Price Discrimination

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Practice Questions

Practice Questions

Labor Markets

The Marginal Product of Labor

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Econ Duel: Is Education Signaling or Skill Building?

Human Capital and Signaling

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The Tradeoff Between Fun and Wages

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Compensating Differentials

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Do Unions Raise Wages?

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Public Goods and the Tragedy of the Commons

Public Goods and Asteroid Defense

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A Deeper Look at Public Goods

Practice Questions

Practice Questions

The Tragedy of the Commons

Practice Questions

Asymmetric Information

Asymmetric Information and Used Cars

Practice Questions

Asymmetric Information in Health Insurance

Practice Questions

Practice Questions

Solutions to Moral Hazard

Practice Questions

Practice Questions

Consumer Choice

Introduction to Consumer Choice

Practice Questions

Budget Constraints

Practice Questions

Indifference Curves

Practice Questions

Consumer Optimization

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Bonus Topics

Office Hours: Game Theory

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Exam

Principles of Economics: Microeconomics

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