Consider an agent that makes long-run and short-run commitment concerning owning a house and a car. We know that house ownership requires long run commitment while decisions regarding car ownership are flexible in the short run. Is it true that if house is a normal good, then the demand for the house is more elastic in the long run than in the short run? Discuss

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Chapter3: Demand Analysis
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NO CHATGPT Consider an agent that makes long-run and short-run commitment concerning owning a house and a car. We know that house ownership requires long run commitment while decisions regarding car ownership are flexible in the short run. Is it true that if house is a normal good, then the demand for the house is more elastic in the long run than in the short run? Discuss.

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