1. How could housing supplied by the public sector be made to rectify some of the problems we have identified above? (What would it do to the supply curve?)

2. If the government gives poor people rent allowances (i.e. grants), how will this affect the level of rents in an uncontrolled market? What determines the size of the effect?

3. The case for and against rent controls depends to a large extent on the long-run elasticity of supply. Do you think it will be relatively elastic or inelastic? Give reasons.