ECON6000 Report Questions On Microeconomics - Assessment 1

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Assessment 1

Question 3

Will the consumer’ welfare increase or decrease due to this change in the housing market? Will there be a loss of welfare? Who would the change affect more? Will offering subsidies or grants cause a change in supply and demand in the housing market, irrespective of whether it is a buyers’ or a sellers’ market? Use appropriate diagrams whilst explaining your answer.

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