Question

Which of the following best explains why the demand for housing is more flexible than the supply? A. New housing developments are being constructed all the time. B. Low interest rates for mortgages make buying a home very affordable. C. The increasing population always drives demand upwards. D. People can move more easily than producers can build new homes.

Answer 1

People can move more easily than producers can build new homes. - D.

Answer 2

Option D is the right answer.

Step-by-step explanation:

• The consumer is more able to move, manufacturers are not that much able to build new homes.

• Housing prices are the primary component possess demand.
• According to the law of demand, the quantity of home demanded rises as the price reduces.
• Housing demand often focuses on the residences ' equity, their existing income, and interest rates.

That's why demand for houses are more flexible.