Question: HI, could you please help me on this question? Consider a competitive market for 'new build' homes. The demand and supply functions for this market

HI, could you please help me on this question?

Consider a competitive market for 'new build' homes. The demand and supply functions for this market are respectively given by: QD = 900 - 2p Qs =-100 + 5p (a) Find the equilibrium Q and p in this market. (4 marks) Suppose the government wants to increase the number of individuals who own a house. They are planning to subsidise transactions in this market to increase Q by 50%. (b) What is the level of subsidy (x) which is required? (7 marks) (c) What is the total cost of this subsidy? (1 mark) (d) What would be the change in consumer surplus from the subsidy? Is this larger than the change in producer surplus? (7 marks) (e) Comment on whether the government's subsidy is likely to be successful. (6 marks)

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