What are the general equilibrium effects between labour markets and housing markets following an increase in labour demand? Question 16Answer a. An increase in labour demand will cause a larger increase in employment in areas with an inelastic housing supply than with an elastic housing supply. b. An increase in labour demand will cause a larger wage increase in areas with an elastic housing supply than with an inelastic housing supply. c. An increase in labour demand will cause a larger wage reduction in areas with an elastic housing supply than with an inelastic housing supply. d. As workers' wages increase, more people move into an area, driving up housing prices. The rising housing prices slow the migration of workers to an area