The argument that demand for apartments is inelastic in the short run is based on the idea that

Question

Quizplus · Accepted Answer

The inelastic demand for apartments in the short run is based on the fact that it is costly and time-consuming to move to a different location. This means that renters are more likely to tolerate rent increases rather than move to a different apartment. Therefore, the demand for apartments remains relatively constant despite changes in rent prices. Option B is partially correct, as the time it takes to build new apartments does contribute to short-run inelasticity, but it is not the sole reason. Options C and D are incorrect, as they suggest that renters would be quick to change apartments or that landlords can quickly fix up new apartments to meet increased demand, which is not realistic in the short run.

The Argument That Demand for Apartments Is Inelastic in the Short