Since July 1st 2000, Australian states and territories have paid a cash grant to first home buyers.Considering the supply of housing is less elastic than the demand for housing, the benefits of such a grant will:

Question

Quizplus · Accepted Answer

When the supply of housing is less elastic than the demand, a cash grant to first home buyers increases the demand for housing without a corresponding increase in supply. This leads to higher prices, benefiting sellers more than buyers.

Since July 1st 2000, Australian States and Territories Have Paid