Question
3. Identify and discuss at least two factors that led to a shift in the supply curve for housing during the pandemic.
Solution
4.4
(266 Votes)
Lyle
Elite ยท Tutor for 8 years
Answer
###Two factors that led to a shift in the supply curve for housing during the pandemic were supply chain disruptions and labor shortages.
Explanation
##Step1: Identify Factors Affecting Supply###During the pandemic, several factors influenced the supply curve for housing. Two significant factors were disruptions in the supply chain and labor shortages. These factors affected the availability and cost of materials and labor necessary for construction, leading to shifts in the supply curve.##Step2: Analyze Supply Chain Disruptions###Supply chain disruptions caused delays and increased costs for building materials such as lumber and steel. This made it more expensive and difficult for builders to maintain previous levels of housing supply, shifting the supply curve to the left (a decrease in supply).##Step3: Examine Labor Shortages###Labor shortages occurred due to health concerns and restrictions, reducing the workforce available for construction projects. This further constrained the ability to build new homes, contributing to a leftward shift in the supply curve.#