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Again, assume we are back to four apartments and all of the original renters. The city council of Storrs is considering applying a tax on

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Again, assume we are back to four apartments and all of the original renters. The city council of Storrs is considering applying a tax on apartments. It would be most efficient for them to apply the tax directly to renters. However, they are concerned about causing a financial burden to the relatively low income population of renters. What would happen to equilibrium price if they applied a 55 tax? As a consultant, would you advise the city council that their concerns about causing a financial burden to renters are well founded? Would you instead recommend that they apply the tax directly to landlords? Why or why not? Suppose the city council of Storrs is interested in reducing the price of housing for the low income population. To this end they issue housing vouchers to our renters such that they can exchange the voucher for $5 off rent. Does this affect the equilibrium price? If so, how? Is this policy effective at reducing the cost of housing

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