Explain why supply is so inelastic

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Question: Housing supply is very inelastic. Even though prices for homes have gone up considerably, supply is not expected to catch up for years. Which of the following explains why supply is so inelastic? (NOTE: I am not asking why there is a housing shortage, I am asking why the supply of housing is so inelastic.)

Due to the 2008 subprime mortgage crisis, there are not enough skilled craftspeople who know how to build houses. Moreover, it takes many years for someone to train to become a skilled craftsperson.

The price of lumber has increased.

Demographic shifts caused an increase in demand for houses.

Reference no: EM133395957

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