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This question assumes that the market for apartments in Seattle is perfectly competitive. (a) Evaluate the decision of the Washington government to double the first

This question assumes that the market for apartments in Seattle is perfectly competitive.

(a) Evaluate the decision of the Washington government to double the first home buyer subsidy in terms of Pareto efficiency and fairness.

(b) Now suppose the Washington government decided not to help first home buyers in Seattle any longer and removes the existing subsidy. Evaluate this decision in terms of Pareto efficiency and fairness.

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