In the short term,how does competitive housing real-estate market react during a natural disaster?

Question

Quizplus · Accepted Answer

In a natural disaster, the demand for housing may increase due to displacement or loss of home. However, there is likely to be a decrease in the supply of housing due to damage to existing properties or destruction of entire communities. This results in a shortage of housing, which leads to an increase in price. As the price increases, the quantity demanded decreases as people are not willing or able to pay the higher price, while the quantity supplied increases as there is an incentive for sellers to enter the market due to profitable selling opportunities. Therefore, option B is the best choice.

In the Short Term,how Does Competitive Housing Real-Estate Market React