The supply of housing in New York City is less elastic than in York, Pennsylvania. As a result, the long-run labor supply curve in New York City is _____ than the long-run labor supply curve in York.

Question

Quizplus · Accepted Answer

The supply of housing being less elastic in New York City means that housing cannot expand as easily in response to demand compared to York, Pennsylvania. This inelasticity in housing supply can make it harder for workers to move to or live in New York City, thus making the long-run labor supply more inelastic as well. Workers are less responsive to changes in wages due to the high and rigid cost of living.

The Supply of Housing in New York City Is Less