a. In the article "Australia has taken a 'light touch' with Airbnb. Could stronger regulations ease the housing crisis? " short-term rental platforms such as Airbnb could be responsible for higher long-term rental prices. Use of a diagram and provide logical arguments to why Airbnb could be responsible for the long-term rental price crisis

b. The Conversation article Australia has taken a 'light touch' with Airbnb. Could stronger regulations ease the housing crisis? mentions in Byron Bay, the Byron Shire Council has endorsed the change for non-hosted holiday letting to 90 days per year for most of the Shire. Use of diagrams and explain the effect of such policy on short-term rental market and the effect on long-term rental market.

c. The Conversation article Australia has taken a 'light touch' with Airbnb. Could stronger regulations ease the housing crisis? mentions weekly rents rose from $555 in June 2020 to $800 by September 2022 in Byron Bay. Use of a diagram and explain how weekly rents in Byron Bay has increased so much during the period.

d. The Conversation article "Will taxing short stays boost long-term rental supply? Other policies would achieve more" mentions the state of Victoria's plans to introduce a levy (or tax) on the revenues of S-T rental platforms. Assume for simplicity that it is a per-unit tax levied on landlords of S-T rental properties. Use of diagrams and analyse the possible 4 effect of this levy on the short-term and long-term rental markets. (hint: a levy will raise the marginal cost).

e, The Conversation article "Will taxing short stays boost long-term rental supply? Other policies would achieve more" mentions the state of Victoria's plans to introduce a levy (or tax) of 7.5% on the revenues of S-T rental platforms. According to the article, it is thought that "the size of the Victoria government's levy and its own budget projections imply the intention is more to raise revenue than to eliminate the state's short-stay sector." [i.e. a rather small reduction in the quantity of S-T rental accommodation]. With that statement, what are the assumptions on the demand and supply elasticity? Would you expect the size of the deadweight loss to be larger or smaller? Illustrate with a diagram