(Answered) If there are only two remaining spec homes in a development of 100 completed and sold units, the…

➤ How does scarcity relate to market equilibrium in housing?
Scarcity describes limited supply of goods or homes. Market equilibrium is the point where supply equals demand. When scarcity tightens, the supply curve shifts left and the equilibrium price rises until demand falls or supply increases. Understanding supply shifts, demand elasticity, and buyer tolerance explains how equilibrium adjusts in housing markets.