Compare the two policies effects on the quantity of housing

Reference no: EM133440524

Question: A mayor wants to help renters in her city. She con-siders two policies that will benefit renters equally.
One policy is rent control, which places a price ceil-ing, p, on rents. The other is a government housing subsidy of s dollars per month that lowers the amount renters pay (to p). Who benefits and who loses from these policies? Compare the two policies' effects on the quantity of housing consumed, consumer surplus, producer surplus, government expenditure, and deadweight loss. Does the comparison of deadweight loss depend on the elasticities of supply and demand?

Reference no: EM133440524

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