Final answer:
A shortage of housing would be found in a sellers' market because demand exceeds supply. Households act as buyers in the goods and services market and as sellers in the labor market. Rent controls can be a political response to demanders outnumbering suppliers.
Step-by-step explanation:
In the context of housing markets, a shortage of housing would typically be found in a sellers' market. In such a market, the demand for houses exceeds the supply, leading to fewer available homes and often higher prices. Households in the goods and services market are usually buyers as they purchase items for daily use. In the labor market, households tend to be sellers because they offer their labor in exchange for wages.
Markets can vary in size and activity, with a thin market having few buyers and sellers and a thick market having many participants. Policies such as rent controls are political responses that sometimes arise when demanders, like renters, significantly outnumber suppliers, leading to potential price regulations in the housing market.