If the demand for housing increases and the supply of housing decreases:

Question

Quizplus · Accepted Answer

When demand increases, it tends to push prices up, and when supply decreases, it also tends to push prices up. Therefore, the price will increase. However, the change in quantity is indeterminate because the increase in demand would increase quantity, while the decrease in supply would decrease quantity. The net effect on quantity depends on the relative magnitudes of the shifts in demand and supply.

If the Demand for Housing Increases and the Supply of Housing