Economics (AS & A Level) · Oct / Nov 2023 · Paper 12 · Question 11

The diagrams show the demand for and the supply of houses. In the short run, the stock of houses for sale, S1, is fixed. A government decides to allow some agricultural land to be used for building houses and subsidises lower-income buyers of the new houses. Which diagram shows the long-run situation?

1. ADiagram A
2. BDiagram B
3. CDiagram C
4. DDiagram D

As printed in the paper