Problem
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.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.