One proposed solution to expand the housing market is by offering tax cuts to landlords. Using the supply and demand model, illustrate how such a tax incentive would function. Specifically, describe the effects of this policy on rental prices, market size, and overall surplus. [20p] B- It's been established that in the short term, the housing supply is highly inelastic, indicating that owners are slow to adjust the available supply in response to price changes. Given this inelasticity, determine who benefits most from a tax reduction. Employ the supply and demand model to support your analysis and provide explanations. [20p] C- In the long term, as property owners adjust to price changes, consider the policy's effects. Consider the limited mobility of many low-income families in cities like New York, where moving costs and social networks deter relocation to other cities and suburbs. Analyze who stands to gain more from the tax cut in this scenario. Employ the supply and demand model to support your analysis and provide explanations. [20p]