Hey /biz/, can you guys explain how the supply & demand curves would change based on the following situation:
The city buys a bunch of houses on your street to use them for subsidized housing (for homeless). Would supply and demand both shift left? Thanks.
Are you talking before or after everyone on the block puts their home up for sale?
I think so, not 100% sure though..
>>1028694
after the purchase has been made by the city with the intent to turn it into government housing
Yes, quantity goes down and price goes up due to there being less, thus p↑q↓.
Realistically price goes down because people don't want to live near homeless people, but that's not the question.
>>1028706
>supply goes down because there are less houses available
>demand goes down because now the neighborhood smells funny
>>1028710
This, nigger effect. Also causes housing to be more expensive in nearby whiter neighborhoods.
>>1028713
Supply shifts left because government now monopolizes supply, making availability less
Demand shifts right, but by those who have less money, so it's a push, see >>1028710
Overall demand by quality tenants shifts left, since no one of any value wants to live in government hovels
It's not the best analogy to apply pure S&D curves to
