In early 2010, the U.S. government offered an $8,000 subsidy to new homebuyers. What effect does a
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In early 2010, the U.S. government offered an $8,000 subsidy to new homebuyers. What effect does a per-house subsidy have on the equilibrium price and quantity of the housing market? What is the incidence of the subsidy on buyers?
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A subsidy will have the opposite effect than a tax on quantity and price x that is ...View the full answer
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