Question: Hi, could you please help me with this Economic question? Question 5 Consider the market for housing in a neighborhood in Toronto, where all housing

 Hi, could you please help me with this Economic question? Question

Hi, could you please help me with this Economic question?

5 Consider the market for housing in a neighborhood in Toronto, where

Question 5 Consider the market for housing in a neighborhood in Toronto, where all housing units are exactly the same. Currently, the equilibrium price of housing is $2,000/month and local residents consume 1,500 units of housing. The local residents argue that housing is too expensive. a) Describe, using a demand and supply diagram, which price control should be used in this case, and how it would affect the market for housing in this neighborhood. [10 marks} b) In a mixed economy, why do governments avoid using price controls? [5 marks) c] Discuss another way the government could respond to the local residents' concerns. [5 marks}

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