Question

The Section 8 program for housing assistance discussed in this chapter in effect shifts out the demand curve for low income housing in a given community. Draw supply and demand diagrams that are consistent with the following outcomes:
a. The price of low income housing gets bid up, and there is no increase in the stock of low income housing.
b. There is no increase in the price of lowincome housing, and there is an increase in the stock of low income housing.
c. There is an increase in the price of lowincome housing, and there is an increase in the stock of low income housing. Which of these scenarios is most consistent with the research by Sinai and Waldfogel that is discussed in the chapter?


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  • CreatedMarch 25, 2015
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