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Business, 27.05.2020 08:58 PineaPPle663
Suppose you are considering two cities, city A with elastic housing supply and city B with inelastic housing supply. The two cities are otherwise exactly identical. Suppose you believe that housing demand in both cities will rise by exactly 20% over the next 3 years. Which city should have a bigger rise in house prices at the end of the 3 years holding all else constant?
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