Affordable Housing Is Seen as a Way to Reduce Crime

question 128

Essay

Affordable housing is seen as a way to reduce crime rates and raise the quality of life in lower-income neighborhoods.
(A)Given this information,what economic concept do you think is relevant to the analysis of the affordable housing market? Why?
(B)Graphically show the market for affordable housing.Make sure you include all relevant aspects of this market,given your answer to part (A).Explain verbally.
(C)Graphically show any deadweight loss in this market.
(D)Discuss potential ways of reducing or eliminating deadweight loss in this market.

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Definitions:

Values

The principles or standards of behavior that are regarded as important in making decisions or judgments.

Sold

The completed transaction of exchanging a good or service for money or other compensation.

Reservation Price

The absolute highest price that a buyer is prepared to pay for a product or service.

English Auction

A type of auction in which prices start low and bid up by participants until no higher bids are offered.