A major step toward mastering the economic way of thinking is learning to reason in terms of supply and demand. I have listed several questions below to answer and practice these concepts.

What effect would you predict on the price of rental housing in an area where several major employers have recently closed down or moved away? Would you expect the effect to be large or small and why?

What effect would you expect an increase in the property tax rate to have on residential rents? Would you expect the effect to be different in the long run from what it is in the short run?