Answer:
House prices would be higher in San Francisco
Step-by-step explanation:
House prices are very similar to prices of other goods and services. It is generally set by the market equilibrium, where the demand for housing meets the supply of housing.
Limited land in San Francisco means that the supply of housing would be low and unable to meet rises in quantity demanded. There would be a shortage of houses since the quantity demanded would be higher than the quantity supplied. Therefore, with a rise in demand, house prices are also likely to increase. On the other hand, Miami offers a lot of room for expansion which suggests that the supply of housing would be able to easily meet the quantity demanded. Thus, housing prices in Miami won’t be as high as those in San Francisco.