Consider the Susin (2003) study of the price effects of vouchers. Suppose the initial price of low
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Question:
Consider the Susin (2003) study of the price effects of vouchers. Suppose the initial price of low income housing is p*=500 and the price elasticity of demand for low income housing is-0.82. Suppose a program of housing vouchers increases the demand for low income housing by 24%. Illustrate the market effects of the voucher program, and include the new equilibrium price p**.
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