The supply of space is a. inelastic in the both the short and long run b. elastic in both the short and long run c. relatively inelastic in the short run, and highly elastic in the long run d. relatively elastic in the short run, and highly elastic in the long run.

The correct answer is: c. relatively inelastic in the short run, and highly elastic in the long run.

The participants in the market for space are the real estate developers, owners and lenders of space as well as property managers. The supply of space is determined by factors such as the cost of producing it, availability of land and the rental price of space.

In the short-run, the supply of space is relatively inelastic. That is, it is not highly responsive to changes in the retail price of space. However, in the long-run, the supply of space is highly responsive to changes in the retail price of space.