Prior to 2005, it seemed like house prices always rose and never fell. when the demand for housing increases, prices in the housing market rise but not always by very much. for prices to rise substantially, the supply of housing must be relatively inelastic. that is, if the quantity supplied increases rapidly whenever house prices rise, price increases will remain small. many have suggested government polices to increase the elasticity of supply. what specific policies might hold prices down when demand increases? explain.