Answer to Question #191637 in Economics for muqaddas

Question

what kind of price rationing strategy should be implement by government to provide renters with houses at affortable price?also mention the impact of this strategy on equilibrium quantity demand and equilibrium quantity supplied of houses?

Answer 1

Since the provision of affordable housing is strategically important for the state, a strategy of reduced tax rates for this type of business can be applied. This strategy will lead to lower prices and an increase in the equilibrium quantity in the rental housing market.