Assume the demand and supply for housing are of the following form: = 500 = 100 +

A) What are the welfare gains from a government policy that increases the supply of housing by = 100. Assume that this added supply is provided directly by the government at market prices. Please show all of your work, including graphs.

B) Above referenced a scenario where the public sector increased housing supply directly. How would welfare change differ if = 100 simply occurred because of a government policy that reduced private sector costs? Please show all of your work, including graphs.

C) Please answer the previous two questions again. But this time assume = 100