In the market for apartment housing, the quantity of available apartments is observed to be less than the number of renters who are willing and able to pay the market price of an apartment. In this scenario, the market is said to be _____.

Answer 1

In this scenario, the market is said to be "tight" or experiencing a "housing shortage." When the quantity of available apartments is less than the number of renters willing and able to pay the market price, it indicates that demand exceeds supply, leading to increased competition among renters for the limited available apartments. This condition can also lead to rising rental prices due to the imbalance between supply and demand.