Free Response Problem 2 Andrew Yang, who ran for the 2020 Democratic Presidential nomination visited the College of Charleston's campus. One of his central policies is the 'Freedom Divided.' According to his website: The Freedom Dividend is a form of universal basic income, a type of social security that guarantees a certain amount of money to every citizen within a given governed population. Yang's proposal is to guarantee payments of $1,000 per month, or $12,000 per year, to all U.S. citizens over age of 18.

Part 1: Apply the five steps of comparative statistics/economic analysis to analyze the effect of universal basic income on the market for housing. Include a 1-2 sentence description of that step as it is applied in the analysis.

Part 2: Illustrate your analysis in a diagram

Part 3: Complete the following statement. Economics policies creates ________________ and _______________________.

Part 4: Discuss the statement in Part 3 in the context of implementing universal basic income.

Part 5: What happens to the impacts you found in part 1 as the supply curve becomes more inelastic?

Part 6: What happens to the impacts you found in part 1 as the supply curve becomes more elastic?

Part 7: Taking into consideration the solutions to parts 5 and 6, what are the short and long run impacts on the housing market?