Final answer:
In the short run, it is difficult for housing market suppliers to increase production due to cost and time constraints. However, in the long run, the supply side can adjust and expand to meet increased demand, allowing for greater elasticity and quantity adjustments rather than price fluctuations.
Step-by-step explanation:
On the supply side of markets, it is generally more challenging for producers to expand production in the short run compared to the long run. The housing market in a specific location, like Orlando, exemplifies this principle. In the short run, defined as less than six months, it can be particularly costly and difficult for housing market suppliers to build new houses, acquire necessary permits, or hire construction workers swiftly due to various restrictions and the nature of construction projects.
In contrast, in the long run, which is defined as a period greater than six months, the market has more time to adjust. Over several years, suppliers can plan and build new developments, expand existing ones, and adjust to increased demand for housing. The elasticity of supply and demand increases in the long run, allowing for greater adjustment in quantities produced, whereas in the short run, supply and demand tend to be more inelastic, resulting in more significant price fluctuations in response to shifts in demand or supply.