Final answer:
The long-run supply curve for rental housing represents the market's long-term response to changes in demand and can vary across constant cost, increasing cost, and decreasing cost industries. An increased demand for housing can shift the demand curve right, leading to higher rental prices and an increase in the available quantity of housing.
Step-by-step explanation:
The long-run supply curve for rental housing can be thought of as reflective of the market's response to changes in demand over time. In the context of the housing market, the supply curve may shift in response to various factors such as changes in income, tastes, and local economic expansion. When considering rent control, the supply curve informs us of how the quantity of rental housing units and the equilibrium price can change based on market demands.
The classic model shows three types of industries: constant cost, increasing cost, and decreasing cost. For instance, if there is a shift in the demand for rental housing to the right due to higher incomes or a change in tastes, the new equilibrium can result in a higher price and increased quantity of housing available, as demand dictates more production of housing, and price responds to equilibrate supply and demand.