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3. This question assumes that the market for apartments in Sydney is perfectly competitive. (a) Evaluate the decision of the NSW government to double the
3. This question assumes that the market for apartments in Sydney is perfectly competitive.
(a) Evaluate the decision of the NSW government to double the first home buyer subsidy in terms of Pareto efficiency and fairness.
(b) Now suppose the NSW government decided not to help first home buyers in Sydney any longer and removes the existing subsidy. Evaluate this decision in terms of Pareto efficiency and fairness.
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