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Suppose a town in an isolated area has a housing market that is in equilibrium. Next, suppose that a shale formation underneath the town causes
Suppose a town in an isolated area has a housing market that is in equilibrium. Next, suppose that a shale formation underneath the town causes a massive influx of people to drill for oil and gas in the formation. Suppose, as the influx of people was just beginning, the town's people voted to approve a law to keep the price of housing at the average level it was before the population influx began. Using the supply and demand model, explain what happens in the housing market
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