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Nil Effects of Public Housing According to Mr. Wizard, “If my single assumption about the market for privately produced housing is correct, the long-run market effects of public housing are nil. The building of 100 public housing dwellings will affect neither the equilibrium price of housing nor the equilibrium quantity of housing.” a. Mr. Wizard’s assumption is that the curve for privately produced housing is . b. Illustrate your answer to ( a ) with a graph showing the effect of 100 public housing dwellings on the market for privately produced housing.
Chapter 15, Problem 2(choose chapter or problem)
Nil Effects of Public Housing
According to Mr. Wizard, “If my single assumption about the market for privately produced housing is correct, the long-run market effects of public housing are nil. The building of 100 public housing dwellings will affect neither the equilibrium price of housing nor the equilibrium quantity of housing.”
a. Mr. Wizard’s assumption is that the curve for privately produced housing is .
b. Illustrate your answer to ( a ) with a graph showing the effect of 100 public housing dwellings on the market for privately produced housing.
Questions & Answers
QUESTION:
Nil Effects of Public Housing
According to Mr. Wizard, “If my single assumption about the market for privately produced housing is correct, the long-run market effects of public housing are nil. The building of 100 public housing dwellings will affect neither the equilibrium price of housing nor the equilibrium quantity of housing.”
a. Mr. Wizard’s assumption is that the curve for privately produced housing is .
b. Illustrate your answer to ( a ) with a graph showing the effect of 100 public housing dwellings on the market for privately produced housing.
ANSWER:Step 1 of 3
Given data:
According to Mr. Wizard, “If my single assumption about the market for privately produced housing is correct, the long-run market effects of public housing are nil. The building of 100 public housing dwellings will affect neither the equilibrium price nor the equilibrium quantity of housing.”