Imagine income in the city was still $1000/month. The city council is concerned by the lack...

  

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Imagine income in the city was still $1000/month. The city council is concerned by the lack of availability of apartments, and instead of the rent control policy, suggests providing a $ 300 subsidy for people to rent apartments. Think of a subsidy as a negative tax where buyers pay rent, then receive a $ 300 cheque every month from the City of Kingston. Would this policy ease the concerns of the city council? Would renters be paying more or less or the same as under the rent control policy? Would landlords get more or less? Carefully Evnlain Imagine income in the city was still $1000/month. The city council is concerned by the lack of availability of apartments, and instead of the rent control policy, suggests providing a $ 300 subsidy for people to rent apartments. Think of a subsidy as a negative tax where buyers pay rent, then receive a $ 300 cheque every month from the City of Kingston. Would this policy ease the concerns of the city council? Would renters be paying more or less or the same as under the rent control policy? Would landlords get more or less? Carefully Evnlain

Answer rating: 100% (QA)

Qd 2000 3Y 3P If Y 1000 Qd 2000 3000 3P Qd 5000 3P Qs 2P A In equilibrium Qs Qd 5000 3P 2P P 1000 Q ... View the full answer