Recall the Application about restrictions on residential housing developments in Britain to answer the following question(s).
-According to the Application, an increase in the demand for housing in a housing market that has a lot of restrictions will result in a _______ increase in the prices because the supply curve is _______.

Question

Quizplus · Accepted Answer

In a market with many restrictions, the supply curve is steeper, meaning that supply is less responsive to changes in price. Therefore, an increase in demand will lead to a larger increase in prices.

Recall the Application About Restrictions on Residential Housing Developments in Britain