In early 2010 the us government offered an 8000 subsidy to, Econometrics

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In early 2010 the us government offered an 8000 subsidy to

In early 2010, the U.S. government offered an $8,000 subsidy to new homebuyers. What effect does a perhouse subsidy have on the equilibrium price and quantity of the housing market? What is the incidence of the subsidy on buyers? Hint: A subsidy is a negative tax.

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