Question 11 (1 point) Suppose the "Rent is Too Damn High Party" recently won a majority of council seats in the last Vancouver election. They are now considering policy solutions to ensure that rent is a reasonable damn price. You have been hired as an economic consultant to advise the City on the effects of two potential policy options. Long run housing demand in Vancouver is given by: P=10000 - Q/2 Long run housing supply in Vancouver is given by: P=-5000 + Q The newly elected politicians decree that $3,000 is a reasonable price. The first policy you are asked to evaluate is therefore a price ceiling of $3,000. Compared to the equilibrium before the policy, price will (increase or decrease) by (number) and quantity will (increase or decrease) by (number) units Question 12 (1 point) Evaluating the policy further, you determine that (number) households will be unable to find housing, and that the total cost to the government of this policy will be Question 13 (1 point) The alternative policy is to provide rental subsidies. Suppose the policy being considered is to provide landlords with $6,000 per unit subsidy. First, pick the correct supply function that will account for the subsidy: P=1000+Q P=-11000+Q P=-5000 +6000Q P=-5000+Q Then find the new equilibrium. Price will be Question 14 (1 point) You determine that after the subsidy, renters will pay and landlords will receive per unit. This implies that the incidence of the subsidy on renters would be percent, while the incidence on landlords would be percent Question 15 (1 point) You conclude that under the rental subsidy :] (number) households will be unable to find housing, and that the policy will cost the