The supply of U.S. housing is more inelastic if most of the timber in the United States goes to housing construction.

Question

Quizplus · Accepted Answer

If a significant portion of the timber in the United States is used for housing construction, then the supply of housing would be more inelastic because an increase in demand for housing would require a proportionate increase in the supply of timber which may not be immediately possible if there is limited availability. This makes it harder for the housing market to respond quickly to changes in demand, making it less elastic.

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